KARACHI, Aug 22(ABC): The State Bank of Pakistan (SBP) is expected to maintain the benchmark interest rate at 15% in its monetary policy statement (MPS) being announced today (Monday).
The central bank is highly likely to maintain the interest rate — it raised the rate by 125 basis points in its last meeting in July to 15%, the highest since November 2008 — despite the fact that inflation has remained elevated. So the status quo will continue to support economic recovery in line with the coalition government’s policies.
Financial pundits and market players have developed consensus that the central bank will maintain the rate at the current level of 15% for the next seven weeks.
The central bank has cumulatively increased the rate by 800 basis points since September, 2021 to control inflation and narrow the current account deficit.
