SBP to decide on interest rate today

KARACHI: The State Bank of Pakistan’s (SBP) monetary policy committee will meet today (Monday) to decide on the interest rate for the next 45 days.

Financial experts say the central bank can keep the interest rate unchanged or increase it by 25 to 50 basis points.

Also Read: Pakistan has entered decade of sustained growth: Shaukat Tarin

The interest rate currently stands at 9.75 per cent after two major hikes in the current fiscal year. The key rate has been jacked up by 275 basis points or 2.75% in the first six months of fiscal year 2021-22.

At the previous meeting, the monetary policy committee decided to raise the policy rate by 100 basis points to 9.75%, to “counter inflationary pressures, address the current account deficit, and ensure that growth remains sustainable.”

Also Read: SBP unveils licensing and regulatory framework for digital banks

“Given rate increases since Sept and outlook, the MPC felt that the end goal of mildly positive real interest rates on a forward-looking basis was now close to being achieved. Looking ahead, monetary policy settings are expected to remain broadly unchanged in the near-term,” it further said.