KARACHI: The State Bank of Pakistan has announced a monetary policy according to which the interest rate has been increased by three percent.
According to reports, the interest rate has increased from 17% to 20% after the announcement of the monetary policy by the State Bank.
State Bank says that inflation has increased to 31.5% in February 2023. The committee expects inflation to rise further in the next few months.
The central bank says average inflation this year is expected to range from 27 to 29 percent, while the current account deficit is $3.8 billion in eight months after a 67 percent decline.
State Bank says that concerted efforts are needed to improve foreign exchange reserves and external position while the committee has also decided to hold its next meeting on April 4, 2023.
It should be noted that the IMF had also demanded an increase in the interest rate from the government.
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