State Bank of Pakistan has raised the policy (target) rate by 150 bps to 10.0 percent to ensure macroeconomic stability which will be effective from tomorrow.
Issuing Monetary Policy for next two months in Karachi on Friday State Bank said economic data released since the last Monetary Policy Committee meeting in September 2018 shows that the positive impact of recent stabilization measures has started to materialize gradually.
It says the current account deficit is showing early signs of improvement. However, the near term challenges to Pakistan's economy continue to persist with rising inflation, an elevated fiscal deficit and low foreign exchange reserves.
It said the recent decline in international oil prices could potentially play a positive role in slowing down the current inflation trajectory the risks currently remain tilted towards the downside.
Source: Radio Pakistan
