The State Bank of Pakistan has announced a monetary policy for the next two months today.
As per the details, the basic interest rate has not been changed by the State Bank while the policy rate of the State Bank is maintained at 13.25%.
Central Bank of the World lowers their policy rates because US Central Bank has lowered policy rate by 25 basis points from.
However, interbank and market exchange have been integrated with the market-based exchange rate system.
Earlier, State Bank of Pakistan (SBP) had announced monetary policy for July and August.
SBS had increased interest rate by 100 bases points raising it from 12.25 to 13.25 percent.
Announcing the policy in Karachi, Governor State Bank Dr. Reza Baqir said that the monetary policy will be applicable from 17th July 2019 for two months.
The Governor said that the interest rate has been increased keeping in view the inflation.
He said that inflation rate is expected to remain 11 to 12 percent in the second quarter of the current financial year.
He said, however, the inflation rate would start to decrease in the latter half of the financial year and would decrease even further in the next financial year 2020-2021.