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Interest rate in Pakistan will remain stable at existing level: Fitch report

KARACHI: A Fitch credit rating agency report on Pakistan said that the interest rate in the country will remain stable at the existing level this year, ARY News reported on Wednesday.

The rating agency report said that the central bank will not enhance the interest rate further in year 2019 and the rate will remain stable at 12.25 percent.

State Bank of Pakistan has recently announced to hike its interest rate by 150 basis points in its monetary policy for the next two months.

The hike in interest rate by the central bank will help to control the inflation, Fitch report said.

Increased interest rate will also stabilize the value of rupee and prices of imported items, report said.

A stable currency and the interest rate will help to curb the price hike and inflationary tendencies.

According to Fitch report the inflation rate will likely to remain at seven percent in Pakistan in the current year.

The central bank announced that since the last monetary policy was issued, three major changes had occurred including a $6 billion package from the International Monetary Fund (IMF), 5.93 per cent depreciation of the rupee, and an increase in government’s borrowing in last nine months.

The State Bank also forecast a sluggish growth rate in fiscal year 2019, whereas it may see a slight improvement in the year 2020.

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