Karachi: The State Bank of Pakistan (SBP) on Monday (August 22) kept the monetary policy rate unchanged at 15%, news sources reported. The policy rate has not been changed after a rally of 800 basis points since September last year.
According to reports, the decision was announced by the Monetary Policy Committee’s (MPC) official Twitter account, citing market stability and the inflation rate. It said that the policy rate was retained at 15% to alleviate the strain on the economy and to account for shifting macroeconomic conditions. It further stated that the resumption of IMF support and the flow of cash from other friendly countries have decreased the current account deficit (CAD), further strengthening the economy. It went on to say that, despite the rise in inflation, the central bank has opted to keep its monetary policy at 15% to allow for additional economic adjustments.
It is worth noting that Pakistan’s interest rate last month surpassed the 14-year high, resulting in an economic slump. To reduce the outflow of foreign exchange (forex), the nation also imposed a blanket ban on luxury non-essential goods imports. The government, however, is expected to receive USD 1.29 billion from the IMF.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
