SBP increases policy rate by 100bps to 13.25pc

KARACHI: The State Bank of Pakistan (SBP) on Tuesday announced to increase its policy (interest) rate by 100 basis points to 13.25 per cent; effective from July 17, 2019.SBP's Monetary Policy Committee (MPC), in its meeting here on July 16, took this decision taking into account upside inflationary pressures from exchange rate depreciation since the last MPC meeting on May 20, 2019 and the likely increase in near term inflation from the one-off impact of recent adjustments in utility prices and other measures in the federal annual budget for the year 2019-20, said SBP Governor, Dr. Reza Baqir at a press conference on the bi-monthly monetary policy statement.He said the MPC decision also took into account downside inflation pressures from softening demand indicators.