SBP announces monetary policy, keeps interest rate unchanged
ISLAMABAD: The State Bank of Pakistan (SBP) has announced the monetary policy for next two months today, maintaining the key interest rate at same level of 10 per cent, ARY News reported on Saturday.
The SBP has announced the monetary policy through press release, as the interim governor of SBP did not give any briefing on the occasion.
After increasing the rate by 100 basis points in the first half of the fiscal year, the SBP had left it unchanged at 10 per cent in the last announcement in January. But majority of analysts were expecting that SBP will slash the monetary policy rate by 50 basis points to 9.5 per cent in the month of March.
Economic experts predicted for the decrease in interest rate after analyzing the strong appreciation in the value of the rupee against the dollar, coupled with a slowdown in inflation during the last three months.
The monetary policy rate is the rate at which commercial banks are allowed to borrow from the central bank’s discount window. The central bank uses this tool to control money supply in the economy.