Islamabad: The Monetary Policy Committee of the State Bank of Pakistan (MPC) has decided to keep the interest rate unchanged at 15 percent for the next seven weeks, ARY News reported on Monday.
According to a statement released on Twitter, the MPC noted a continued slowdown in economic activity, as well as lower headline inflation and a current account deficit since its last meeting.SBP maintains policy rate at 15pc
2/5 The MPC is of the opinion that from the information currently available The existing monetary policy stance provides a suitable balance between managing inflation and maintaining growth after the floods.
— SBP (@StateBank_Pak) October 10, 2022
“Based on currently available data, the MPC is of the opinion that the existing monetary policy stance creates an appropriate balance between managing inflation and maintaining post-flood growth,” the statement added.SBP maintains policy rate at 15pc
from the information currently available The central bank said growth could fall to around 2 percent in FY23, compared with a 3-4 percent forecast from the previous forecast, “despite lower demand pressures. But higher food prices could cause FY1823 average headline inflation to be somewhat higher than the pre-flood estimate of 18-20%,” the report added.
“With the pressure from higher food and cotton imports and lower textile exports, most are often offset by slower domestic demand and lower global commodity prices. The current account deficit in FY23 is expected to remain close to the previously projected 3% of GDP,” concludes .