ISLAMABAD:The State Bank of Pakistan (SBP) has announced the monetary policy for the next two months under which 300 basis points have been increased in the policy rate bringing it to 20 percent.

 

According to the statement, the decision was made in the meeting of the Monetary Policy Committee on Thursday. The committee said it expects the inflation to rise further in the next few months as the impact of these adjustments unfolds after which it is expected to fall at a gradual pace.

 

The committee also stressed the urgent need for the energy conservation measures to alleviate pressure on the external account and meet the import requirements of other sectors. The committee said that recent fiscal measures, including an increase in GST and excise duties, reduction in subsidies, adjustments in energy prices, and the austerity drive are expected to help contain the otherwise widening fiscal and primary deficits.