KARACHI: The State Bank of Pakistan (SBP) decided to keep the policy rate unchanged at 7 percent.
The central bank Committee on Monetary Policy (MPC) met on Monday under the chairmanship of Governor State Bank Dr. Reza Baqir and 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.
For complete statement https://www.sbp.org.pk/m_policy/2020/MPS-Sep-2020-Eng.pdf
