ISLAMABAD: The State Bank of Pakistan (SBP) on Thursday has announced a 25 basis point increase in the policy rate, taking it to 10.25 percent. Governor SBP Tariq Bajwa while announcing the new monetary policy at a press conference in Islamabad said that the new policy will be in effect from February 1, 2019. The Governor SBP said the monetary policy committee has noted that the impact of the government’s stabilization measures is gradually unfolding and the consumers confidence is improving amid reduced economic uncertainty. He said the fiscal deficit has witnessed downward trend while inflation rate is increasing. The Governor said the government will have to vigorously continue its endeavors to further reduce the fiscal and current account deficit to put the economy on a long term positive trajectory. He hoped that the national exports would get a boost this year while imports will reduce.