KARACHI, Pakistan: The Governor State Bank of Pakistan (SBP) Ashraf Wathra announced on Saturday that the central bank has reduced the policy rate by 100 basis points from 9.5 to 8.5 percent.
In a new conference in Karachi on Saturday evening, the governor said that the SBP has also revised downward inflation target for the current financial year from projected 8.5 to 5.5 percent.
The governor said that the inflation is coming down due to reduction in oil prices and its impact on products, services and transportation.
Wathra said that inflation rate in the first six months of the current financial year remained at 6.1 percent and in the last month 4.3 percent.
The SBP governor also anticipated increase in production due to increase in demand for consumer goods as a result of decline in oil prices.
In addition, he said that reduction in oil prices have benefitted economy of the country but the Federal Board of Revenue (FBR) revenues are likely to be affected due to this factor.
The governor also expressed the confidence that the momentum of growth in agriculture sector witnessed during last financial year would continue during current fiscal year.
