SBP governor clarifies on interest rate hike

Responding to rumours regarding another possible hike interest rate, the State Bank of Pakistan (SBP) Governor Jameel Ahmed clarified that there will not be more hikes in the policy rate, ARY News reported on Thursday.

While speaking to journalists, he said that the interest rate is already at the mark of 22% which is quite high.

The State Bank of Pakistan (SBP) on Thursday decided to keep the key policy rate unchanged at 22 per cent.

The announcement came after a meeting of the bank’s Monetary Policy Committee (MPC).

“[The] MPC noted that while global oil prices have risen recently, inflation is still projected to trend down, especially from the second half of this year,” it said.

MPC also assessed that the tight monetary policy stance, improved agriculture outlook, and recent administrative and regulatory reforms will help achieve the medium-term inflation target.