State Bank decides to sustain interest rate at 13 pc

State Bank of Pakistan (SBP) on Tuesday has decided to maintain interest rate at 13 percent. According to SBP, inflation is likely to rise due to the expected increase in power tariff. In the second monetary policy of the year, it is stated that situation of balance of payments and price hike has improved in the country however, financial and real production sectors performance is not satisfactory. Improvement in current account deficit due to surge in remittances and expectations of end of global recession are good signs for Pakistan. According to SBP, rise in power and oil prices will have negative impact on the economy.