Pakistan News

Policy rate to remain unchanged at 7pc: SBP

The State Bank of Pakistan (SBP) has decided to maintain its policy rate at seven per cent in its new monetary policy announced on Monday.

Following a meeting of the Monetary Policy Committee (MPC), the SBP, in a statement, said: "In reaching its decision, the MPC considered key trends and prospects in the real, external and fiscal sectors, and the resulting outlook for monetary conditions and inflation."

The statement by the central bank also noted that "business confidence and the outlook for growth have improved" in the country since the last meeting of the MPC that was held in June.

The statement said that the improvement reflected the decrease in cases, ease in lockdowns as well as the "timely stimulus provided by the government and SBP".

On June 25, the SBP had decided to slash the country's policy rate by 100 points to seven per cent, the fifth time since the coronavirus pandemic hit the global economy, with the total reduction being 625 basis points.

More to follow.

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