Wednesday, August 4, 2021

SBP to review monetary policy next week, decision on interest rate cut likely

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ISLAMABAD: The Monetary Policy Committee of the State Bank of Pakistan (SBP) will meet next week to decide whether or not to cut interest rate in the wake of consumer inflation registering one per cent decline last month.

The central bank will issue the Monetary Policy Statement through a press release on the same day after the meeting slated for March 17.

Annual consumer inflation declined to 12.4 per cent compared to 14.6 per cent in January.

Pakistan Bureau of Statistics (PBS) data showed consumer inflation decreased one percent in February 2020 as compared to an increase of two percent in the previous month.

Earlier, on Jan 28, the SBP maintained interest rate at 13.25 per cent after ruling out any possibility for making a reduction in view of real interest rate.

Read More: Inflation witnesses decline across Pakistan during Feb 2020, shows PBS data

Dr Reza Baqir, while addressing a press conference after the conclusion of a session of Monetary Policy Committee (MPC), had said the interest rate will be retained to 13.25 per cent, whereas, the inflation rate is expected to be maintained between 11-12 pc in the current fiscal year.

The committee decides to maintain its policy rate citing the rise in inflation which could be reduced after making improvements in supply process.

Read More: Financial indicators hopeful, inflation will come down in few months: Reza Baqir

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