The State Bank of Pakistan (SBP) has announced the Monetary Policy leaving the interest rate unchanged at 7% for the next two months.
The decision was taken by the Monetary Policy Committee after an economic review. According to the committee the decision has been taken in accordance with the market policies.
According to the details, the central bank adjusts the policy rate according to the inflationary trend of the economic market.
Earlier, due to the Covid-19 lockdown in the country and across the globe prompted the central bank to cut the policy rate by a significant 6.25 basis points in a period of four months from March to 7% in June 2020.
However, the International Monetary Fund’s (IMF) ongoing loan program has been put on hold ahead of the increase in electricity and gas tariffs.
In the months of July and August, the average inflation reading shrank to 8.74% in the current fiscal year, which was in line with the central bank’s projection of 7-9% inflation for FY21.