KARACHI: State Bank of Pakistan on Friday raised its main policy interest rate by 25 basis points to 6 percent, the bank´s governor said, citing the depreciation of the rupee.
The central bank, in a press statement, said four key factors of Pakistan’s economy have witnessed important changes since November 2017 impinging upon the policy rate decision.
The monetary policy statement said that the current account deficit remains under pressure despite rising exports because of high levels of import.
Firstly, the Pakistani rupee has depreciated by around 5 percent. Secondly, oil prices are hovering near $70 per barrel, the statement said.
However, the SBP expressed hope that the export package, rupee depreciation, and rising remittances, among other factors, would help reduce the deficit.