SBP keeps interest rate unchanged at 22%

Islamabad: State Bank of Pakistan (SBP) on Monday announced Monetary Policy 2023 and decided to keep the interest rate unchanged at 22 percent.

The SBP governor disclosed that the (Monetary Policy Committee) MPC chose to hold the interest rate at 22 percent for the ensuing 1.5 months, according to the details. The choice is being made as the nation struggles to control its high inflation rate, which is currently at 29.2 percent.

According to reports, the government's actions have led to a notable improvement in the current account.

The State Bank’s Monetary Policy Committee thoroughly reviewed the economic data and the prevailing inflation situation before arriving at the decision to maintain the interest rate.

As per predictions, the inflation rate will be between 20 and 22 percent for the current fiscal year, which is a decrease from the prior rate.

The State Bank made laudable efforts to stabilize the foreign exchange reserves, which have grown to $8.2 billion. In December, Governor Jameel Ahmed addressed optimism regarding additional growth in foreign exchange reserves.

The Governor underscored the bank's focus on achieving stability when speaking about GDP growth. For this fiscal year, the expected GDP growth is predicted to be between 2 and 3 percent.