Monetary policy announcement, one percent increase in interest rates

Monetary policy announcement, one percent increase in interest rates

State Bank announced a new monetary policy and increased the interest rate by one percent.

According to the details, State Bank Governor Jameel Ahmed announced the new monetary policy during the press conference.

Governor State Bank said that the interest rate has increased by one percent from 16 percent to 17 percent.

Read more: Dollar crosses Rs 230 

With this increase, the interest rate in the country has reached a 27-year high.

Jameel Ahmed said that steps are necessary to stop inflation. There is a current account deficit for the external sector. Dollars are not coming, which keeps the pressure on the foreign exchange reserves.

He further said that since November, the review has been done till now, and there is a lot of impact on our imports. There are a lot of issues going on in large-scale manufacturing.

The protest of the importers came to fruition, the State Bank took a big decision

Governor State Bank says that a current account deficit of 10 billion dollars is possible. The current account deficit for 6 months is 3.4 billion dollars.

Jameel Ahmad said that foreign exchange reserves have decreased due to external payments. This year there will be a current account deficit of 9 billion dollars.

He said that the uncertainty in the global market is affecting Pakistan.