Friday, January 27

Tag: Government and SBP

(City): State Bank’s MPC keeps policy rate unchanged at 7 percent

Karachi:State Bank of Pakistan said on Monday that its Monetary Policy Committee (MPC) in a meeting today decided to keep the policy rate unchanged at 7 percent. The MPC noted that compared to the time of the last meeting in June 2020, business confidence and the outlook for growth have improved. This reflects the decline in Covid-19 cases in Pakistan and the easing of lockdowns, as well as the timely stimulus provided by the Government and SBP. At the same time, the forecast for inflation has risen slightly, primarily due to recent supply side shocks to food prices. Average inflation is now expected to fall within the previously announced range of 7 - 9 percent during FY21, rather than marginally below. The MPC noted that financial conditions continue to be accommodative with real i...