KARACHI: The State Bank of Pakistan (SBP) on Monday opted to maintain the current interest rate at 22 per cent.

The decision was announced by Governor of the State Bank of Pakistan Jameel Ahmed, following a meeting of the bank’s Monetary Policy Committee (MPC) earlier in the day.

Governor Jameel Ahmed highlighted that the inflation rate stood at 29% in the previous month but is expected to decrease in January. Additionally, he mentioned that the current account deficit has been reduced to 0.7%. The foreign reserves held by the SBP presently amount to $8.3 billion, indicating an improvement in the balance of payments.

This decision mirrors the stance taken in the SBP MPC’s previous meeting on December 12, where the key policy rate was also kept unchanged at 22%, aligning with market expectations. At that time, the MPC reiterated the view that the real interest rate remains positive on a 12-month forward-looking basis, and there is an expectation for inflation to continue on a downward trajectory.