The State Bank of Pakistan (SBP) has decided to maintain the status quo and keep the key policy rate unchanged at 22 percent to keep the aggregate demand in check, according to a press release issued on Thursday.
The announcement came after a meeting of the bank’s Monetary Policy Committee (MPC).
“This decision takes into account the latest inflation outturn reflecting the continuing declining trend in inflation from its peak of 38pc in May to 27.4pc in August 2023.
“Even though global oil prices have risen recently and are being passed on to consumers through adjustments in administered energy prices, inflation is projected to remain on a downward trajectory, especially from the second half of this year,” the state bank said.
1/4 Monetary Policy Committee (MPC) decided to maintain the policy rate at 22 percent in its meeting today. https://t.co/Rns1WF4AsB#SBPMonetaryPolicy pic.twitter.com/HT9w9wWZAU
— SBP (@StateBank_Pak) September 14, 2023
The monetary policy is critical for the stakeholders of the economy, particularly in the wake of over 26pc inflation. The current interest rate has already discouraged traders and businessmen from borrowing costly bank money.
