Daily Times

KARACHI: The State Bank of Pakistan (SBP) announced its bi-monthly monetary policy on Friday and decided to maintain its policy rate at 7%, according to a statement issued by the bank.

The Monetary Policy Committee of the State Bank of Pakistan met on Friday in Karachi. The meeting was held to discuss and decide the bi-monthly monetary policy. The MPC issued a monetary policy statement after the meeting.
The State Bank of Pakistan decided to keep the interest rate unchanged.

According to the official statement, the MPC “maintained policy rate at 7%”. This is done on order to keep businesses from facing loss due to the pandemic.

The Monetary Policy Committee noted that the policy “remains appropriate to support economic recovery while keeping inflation expectations well-anchored and maintaining financial stability.”

SBP said that the absence of “unforeseen developments”, it is expected the monetary policy settings to “remain broadly unchanged in the near term”.

The MPC foresaw that as economic recovery stabilises and makes a return to full capacity possible, the policy rate in the future will be “measured and gradual to achieve mildly positive real rates”.