KARACHI: The monetary policy committee of State Bank of Pakistan (SBP) after discussing various aspect of economy has decided to keep interest rate unchanged at 5.75 percent.
In its policy statement, the central bank has said that after bottoming out in October 2015, CPI inflation is on a rising trend. Improvement in economic conditions, rise in consumer confidence will keep inflationary expectations high for the next six months.
The central bank has highlighted that international oil prices, increase in US interest rate and unpredictability of non-trade flows will influence inflation and current account. Mixed global growth outlook, rate hike in US and unpredictability of non trade flow will influence current account balance negatively for FY17.
Based on these assessments the central bank’s MPC left policy rate level at 5.75 percent.
