SBP hikes 200 basis points in discount rate

KARACHI: Pakistan's central bank Wednesday announced 200 basis points increase in the discount rate to further tighten the monetary policy. The discount rate with the raise has reached to 15 percent after the increase. Governor State Bank of Pakistan Dr. Shamshad Akhtar announced the interim monetary measures to in a press conference here. She said that the inflation in the country has rose to 25 percent while the core inflation has reached to 21.7 percent. She said that the economic indicators during the last four months were not according to the expectation. She said that the 35 percent increase in the import is unbearable.Shamshad Akhtar observed that the solution of the fiscal problems of Pakistan is difficult and complicated.She indicated that the government expenses were enhanced more than the available sources in the system. The current deficit during the last four months reached to 5.9 billion dollars, the governor central bank said. The food inflation has reached to 34 percent, she said adding that there is the need of decreasing inflationary tendencies in the system.

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