The State Bank of Pakistan (SBP) published its Monetary Policy 2023 and chose to keep the interest rate at 22 percent.
SBP announces monetary policy: The MPC agreed to hold the interest rate at 22 percent for the ensuing 1.5 months, according to the specifics provided by SBP Governor. Amidst the nation’s struggle with a high inflation rate, currently at 29.2 percent, they are making the choice.
Before deciding to keep the interest rate the same, the State Bank’s Monetary Policy Committee carefully considered the economic data and the current inflation scenario. They stated that the government’s actions have significantly improved the current account.
The experts predict that for the current fiscal year, the inflation rate will be between 20 and 22 percent, representing a decrease from the previous rate.
The State Bank made excellent efforts to stabilise the foreign exchange reserves, which have grown to $8.2 billion. In December, Governor Jameel Ahmed voiced optimism regarding additional growth in foreign exchange reserves.
The Governor emphasised the bank’s focus on achieving stability when speaking about GDP growth. Further, For this fiscal year, the expected GDP growth is predicted to be between 2 and 3 percent.