State Bank keeps discount rate unchanged in new monetary policy

Unveiling the first monetary policy of the new fiscal year, Governor central bank Ashraf Wathra said that the bank has decided to keep the discount rate at 7.0 percent for the next two months.

Wathra said that the key inflation rate stayed subdued while trade deficit has narrowed.

He said that the international rating agencies have acknowledged improvement in the state of economy of Pakistan.

In May 2015, the SBP had reduced the policy rate by 100 basis points or 1 percent to 7 percent which was the lowest rate in last 42 years.

Earlier, Governor Ashraf Mahmood Wathra chaired the SBP board of directors meeting at SBP head office to approve the monetary policy for the period of next two months.