Decision on interest rate for next two months today

KARACHI: The State Bank of Pakistan (SBP) will announce its monetary policy for the next two months today (Monday).

The central bank’s monetary policy committee (MPC) will meet today to discuss and decide whether to maintain the interest rate at 7% or increase it to control rising inflation.

Following the meeting, SBP will issue a monetary policy statement through a press release.

“SBP will tweet the decision of the Monetary Policy Committee at 4:30 PM today and upload it on SBP website at the same time,” the central bank wrote in a post on its official Twitter handle.

On July 27, the SBP maintained the interest rate at 7% for the next two months.

Also Read: MONETARY POLICY: SBP LEAVES INTEREST RATE UNCHANGED AT 7PC

The MPC had noted that since the last meeting in May, the committee was encouraged by the continued domestic recovery and improved inflation outlook following the recent decline in food prices and core inflation.

“As a result of these positive developments, growth is projected to rise from 3.9 percent in FY21 to 4 – 5 percent this year, and average inflation to moderate to 7 – 9 percent this year from its recent higher out-turns,” it said.

SBP said inflation fell from 11.1 percent (y/y) in April to 9.7 percent in June, while for the first time since January, food prices fell on a month-on-month basis in June, on the back of the government’s administrative measures and imports of wheat and sugar.