The State Bank of Pakistan (SBP) has taken a significant determination to retain the interest rate at 22 percent. The press was addressed by Jameel Ahmad, the Governor of the State Bank of Pakistan (SBP), subsequent to the convening of the Monetary Policy Committee (MPC) meeting in Karachi on Monday. During this address, it was affirmed by Governor Ahmad that the markup rate will remain unaltered for the forthcoming two months.
The Monetary Policy Committee (MPC) conducted a comprehensive assessment of many economic indicators, the general financial status, and the performance of diverse sectors prior to reaching this determination. In light of the prevailing economic conditions, the SBP expresses optimism on a projected growth rate of 2-3 percent for the ongoing fiscal year.
Nevertheless, it is anticipated that the inflation rate will persist within the bracket of 20-22 percent for the course of the fiscal year. Furthermore, it is projected that the current account deficit will remain between 0.5 and 1.5 percent throughout the aforementioned timeframe.
The Monetary Policy Committee (MPC) has established a semi-annual timetable of meetings in a continuous manner. The inaugural session of the fiscal year 2023-24 was convened on Monday, under the leadership of Jameel Ahmad, the Governor of the State Bank of Pakistan. The forthcoming Monetary Policy Committee (MPC) sessions for the initial half of the present fiscal year have been designated for September 14 (Thursday), October 30 (Monday), and December 12 (Tuesday).
The Monetary Policy Committee assumes a crucial role in the formulation of the nation’s monetary policy. The entity in question is responsible for making determinations pertaining to intermediate monetary goals, pivotal interest rates, and reserve provisions, as well as executing regulatory measures. In addition, the committee grants approval and releases the monetary policy statement along with other associated actions.
The decision to keep the interest rate at 22 percent demonstrates the State Bank of Pakistan’s dedication to stabilizing the economy and promoting growth in the face of existing economic difficulties.