Connect with us

Hi, what are you looking for?

Online Business Success

SBP leaves policy rate on hold

403768 014725 updates


State Bank of Pakistan building. — AFP/File
State Bank of Pakistan building. — AFP/File

KARACHI: In line with market expectations, the State Bank of Pakistan (SBP) on Tuesday left the benchmark interest rate unchanged at 9.75% for the next six weeks to maintain a balance between inflation reading and economic growth.

Today’s Monetary Policy Committee (MPC) meeting was the first after the start of the Ukraine-Russia conflict which is posing a threat to the national economy and affecting the stock market.

The interest rate and flexible rupee-dollar parity are the two major tools available with central banks all over the world to control inflation reading and give a direction to the economic trajectory in their respective countries.

The central bank had increased the key policy rate by a cumulative 275bps from September to December 2021 to 9.75% to control the rising inflation and narrow the widening current account deficit, while economic activities remain healthy.

It was the third consecutive monetary policy statement (MPS) in which the central bank maintained the policy rate to support recovery in economic activities despite a higher inflation reading and the recent depreciation of the rupee.

In the last MPS’ forward guidance released on January 24, the central bank had mentioned that “current real interest rates on a forward-looking basis are appropriate to guide inflation to the medium-term range of 5-7%, support growth and maintain external stability. If future data outturns require a fine-tuning of monetary policy settings, MPC expected that any change would be relatively modest.”

.



Source link

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Latest

Technology

We are excited to bring Transform 2022 back in-person July 19 and virtually July 20 – 28. Join AI and data leaders for insightful...

Top Stories

United States Securities and Exchange Commission (SEC) chair Gary Gensler is in talks with Commodity Futures Trading Commission (CFTC) officials on a “memorandum of...

Online Business Success

Business professionals in a meeting presentation discussing company growth getty You’ve got a product the team’s excited about. The group wants to start getting...

Social Media

Are you looking for ways to improve your social media content? Want to add video to your strategy but not sure where to start?...

Top Stories

Sky Mavis, the creator of the play-to-earn game Axie Infinity (AXS), announced that it will reimburse victims of the Ronin bridge hack and reopen...

Technology

In context: Intel’s Arc A-series family of discrete GPUs may turn out to be this year’s most underwhelming hardware release. And that’s despite the...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement