Skip to content
Breaking News

Breaking News

  • Home
  • World
  • Business
  • Health
  • Entertainment
  • Life Style
  • Sports
  • Toggle search form

SBP keeps key policy rate unchanged at 22% | The Express Tribune

Posted on July 31, 2023 By Admin No Comments on SBP keeps key policy rate unchanged at 22% | The Express Tribune



KARACHI:

The central bank on Monday announced that the key policy rate – the cost of banks’ lending – would remain unchanged at 22 per cent.

Notably, in its first meeting after a new loan programme by the IMF, the SBP was scheduled to review its key policy rate today. It was to assess whether it remains appropriate at the current historically high level of 22% to curb inflation and support economic growth or if the rate requires further hikes.

Speaking to the media, State Bank of Pakistan (SBP) Governor Jameel Ahmad clarified that the rate was being maintained due to the drop in inflation reading in June as compared to the six-decade high of 38% in May earlier this year.

Read SBP jacks up policy rate by 100bps to 22%

The central bank governor said that the inflation rate in the coming fiscal year (FY 2024-2025) is expected to be in a range of 20-22%.

He also revealed that economic growth is projected in the range of 2 to 3 per cent in FY2024-2025.

“In the first half of FY2024, inflation would reduce gradually,” he said adding that by the second half of the fiscal year, “it would reduce rapidly”.

It may be mentioned here that Pakistan’s Consumer Price Index (CPI) inflation growth rate is anticipated to slow down modestly on a year-on-year (YoY) basis, reaching a low recorded in December 2022.

A report by research house AHL suggests that at the start of fiscal year 2024, there is an expectation of witnessing a decline in headline inflation on a YoY basis, marking a low point since December 2022 when it was recorded at 24.5% YoY.

“We expect inflation to clock in at 26.4% during July 2023 against 24.9% YoY recorded in the same period last year and a decline from 29.4% YoY registered in the previous month,” AHL’s analyst Sana Tawfik noted.

Monthly inflationary pressures are likely to persist in July 2023, with an expected MoM increase of 1.9%. Notably, the recent power tariff hike is expected to have a significant impact on the monthly inflation rate.

In July 2023, core inflation is expected to experience a slight uptick, reaching 21.2% on a YoY basis.

Looking forward, the main risks to overall inflation are expected to be driven by high food and energy prices, potential impacts of budgetary measures, and the vulnerability of a weaker currency.

 





Source link

Business Tags:Latest, News, Pakistan

Post navigation

Previous Post: Madonna thanks her children, feels lucky to be alive 1 month after health scare
Next Post: Jalen Brunson’s wedding was a Villanova title squad reunion

More Related Articles

US Fed Meeting: FOMC Holds Interest Rate For Second Time At 4.25-4.5%, Sees 50 bps Cut In 2025 – News18 Business
Aldi’s cheapest Christmas dinner claim was misleading, says advertising watchdog Business
Highway gridlocks paralysesupply chains | The Express Tribune Business
Markets sink as Trump confirms tariffs on Canada, Mexico and China – SUCH TV Business
Tense Q1 sees IndiGo profit drop 20% to Rs 2,176 crore – Times of India Business
India Needs A Stablecoin-First Crypto Policy, Say Industry Experts Business

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Ryanair to increase oversized bag bonus
  • Man receives world’s first pig lung transplant in groundbreaking medical procedure
  • India cricket ends $43.6m sponsorship after online gambling ban: report
  • Morgan Wallen joins artists pushing back on Grammys
  • Zara Noor Abbas, Zahid Ahmed bring grace and grit to Dil Dhoondta Hai Phir Wohi | The Express Tribune

Categories

  • Business
  • Entertainment
  • Health
  • Life Style
  • Sports
  • World

Copyright © 2025 Breaking News.

Powered by PressBook Blog WordPress theme