Pakistan News

SBP increases policy rate to 17pc

SBP increases policy rate to 17pc

State Bank of Pakistan (SBP) Governor Jameel Ahmad announced on Monday that the Monetary Policy Committee (MPC) had decided to increase the interest rate by one per cent to 17pc.

He made the announcement in a press conference following the MPC’s meeting.

The committee, in its meeting, noted that inflationary pressure was persistent. “It noted that price stability was required to control inflation and maintain the growth rate,” Ahmad said.

“Our short-term challenges, including current account deficit, remain. There is some delay in the inflows we were expecting due to which our reserves are under pressure.”

Thirdly, the committee noted the global economic situation, including the International Monetary Fund and the World Bank’s downgrading of the global economic growth rate and the prevailing uncertainty. “It affects our market directly or indirectly. For example, our exports and remittances are impacted.”

More to follow.

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