SBP puts speculations to rest by sticking to 22pc interest rate
Business
Country witnessed significant decrease in inflation in June, asserts SBP governor
KARACHI (Dunya News) – The State Bank of Pakistan (SBP) maintained on Monday the status quo and decided to keep the key policy rate at 22 per cent.
This announcement was made by State Bank Governor Jameel Ahmed after a meeting of the Bank's Monetary Policy Committee (MPC).
The State Bank had increased its key policy rate by 12.25 percentage points since April 2022, mainly to curb ballooning inflation. The State Bank kept rates steady in June and said inflation had reached 38 per cent in the previous month.
— SBP (@StateBank_Pak) July 31, 2023
But before the end of the month, it hiked rates by 100 basis points in an emergency meeting, citing a "slightly distorted outlook for inflation".
In a press conference today, the SBP governor said: "The decision to maintain the policy rate has been taken after reviewing inflation."
He asserted that there was a significant decrease in inflation in June.
