An announcement has been made by the State Bank of Pakistan (SBP) to lower the interest rate by 1%, from 20.5% to 19.5%.
According to State Bank governor Jameel Ahmed, this decision was decided at the Monetary Policy Committee (MPC) meeting on Monday. As per the SBP’s most recent evaluation, the decrease is a reaction to the consistently declining rate of inflation.
According to Governor Ahmed, there will be another assessment of the interest rates and economic statistics in September. In spite of external payments, he claimed that the country’s foreign exchange reserves were stable and growing.He stated that the rate of inflation dropped to 12.6% last month. The Bank had predicted that inflation would range from 23 to 25% at the previous press conference, and it actually averaged 23.4%.
He said the policy rate was lowered by 100 basis points, from 20.5% to 19.5%, at the Monetary Policy Committee meeting after considering the current account and additional variables.
He went on to say that while inflation is declining, the current account deficit has also significantly decreased. It was $17.5 billion in 2022, dropped to $3.3 billion in 2023, and now stands at a mere $7 million, which represents
