The State Bank increased the interest rate by one percent, after which the interest rate rose to the highest level in the country’s history at 21 percent.
Web Desk: The State Bank announced the monetary policy and increased the policy rate by 100 basis points, after which the interest rate has increased from 20 to 21 percent.
In the statement issued by the central bank, it has been said that the rate of inflation in March reached 35.4 percent.
The statement said that three important developments have been noted since the March meeting, the current account deficit has narrowed significantly from expectations, significant progress has been made in the completion of the ninth review of the IMF program, recent tensions in the global banking system. has increased difficulties in accessing the international market.
The State Bank statement said that tightening monetary policy will help bring inflation down to the medium-term target in the next two years.
The central bank’s statement also said that economic growth in FY23 will be lower than the post-flood assessment. Current account deficit for the current fiscal year is 68 percent lower than the first eight months of the fiscal year. Expected to persist over the months.
According to the statement, the foreign exchange reserves are under pressure due to debt payments, the early completion of the IMF’s ninth review is necessary to increase the foreign exchange reserves, the average inflation for the fiscal year will be 27.3 percent.