Interest rate unchanged as SBP announces monetary policy

ISLAMABAD: State Bank of Pakistan (SBP) on Monday announced Monetary Policy 2023 and decided to maintain the interest rate unchanged at 22 percent, ARY News reported.

According to the details, SBP governor revealed that the MPC decided to keep the interest rate unchanged at 22 percent for the next one and a half months. The decision comes amidst the backdrop of the country grappling with a high inflation rate, which currently stands at 29.2 percent.

The State Bank’s Monetary Policy Committee thoroughly reviewed the economic data and the prevailing inflation situation before arriving at the decision to maintain the interest rate. It was noted that there has been a significant improvement in the current account due to the government’s initiatives.

The inflation rate is expected to be around 20-22 percent for the current fiscal year, indicating some relief compared to the previous rate.

The State Bank’s efforts to stabilize the foreign exchange reserves have been commendable, with reserves now reaching 8.2 billion dollars. Governor Jameel Ahmed expressed hope about further improvement in foreign exchange reserves by December.

Regarding the GDP growth, the Governor emphasized the bank’s focus on achieving stability. The anticipated GDP growth for this fiscal year is projected to be in the range of 2 to 3 percent.