SBP Likely to Keep its Monetary Policy Rate at 7%

SBP likely keep its monetary policy rate stabilized at 7% for the third in a row in response to the aftereffects of COVID-19.

SBP

According to the State Bank of Pakistan (SBP), it will likely keep its monetary policy rate stabilized at 7% for the third in a row in response to the aftereffects of COVID-19.

It is said that the risks to the outlook for growth and inflation appear balanced.

To discuss the same, SBP’s monetary policy committee will meet this Friday. 

According to the BMA Capital Executive Director, it is expected that the interest rate will remain the same. His forecast is based on soft inflation reading during the ongoing month.

This statement is further backed by the Pak-Kuwait Investment Company Research Head who agreed with the status quo and expects inflation to come down to 6% in January.

It is also said that the dovish stance may continue till July with inflation to stay average within the SBP’s target range of 7-9% during FY21.

According to the source, the consumer price index inflation eased to 8% in December from 8.3% in the previous month. The SBP expects to keep up with its growth projection of 1.5 to 2.5% in FY2021, which is a slight recovery from the dizzying 0.4% contraction in FY20 as a result of the coronavirus lockdown

News Desk is the author at Research Snipers covering all Pakistan news including Business, Social, Entertainment, Economy, Pak News, World News, and More. News Desk is managed by a senior editor at Research Snipers.

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