BUSINESS

SBP Maintains Policy Rate At 7 Percent

The State Bank of Pakistan has decided to maintain the policy rate at 7 percent.

Addressing a news conference in Karachi Governor State Bank Dr Reza Baqir said the same policy rate is expected to be retained in the near future.

Dr Baqir said the monetary policy committee has forecast the inflation to remain in the 7-9 percent range.

He said the reason behind inflation was not high demand. The Governor State Bank added that things are getting better than before.

He said the economy is improving and Pakistan's Monetary Policy supports it however added that the improvement is still not the kind that we would like to see for our nation.

He said the current account surplus is a welcomed change. The governor said that foreign exchange reserves are 13 billion dollars.

Dr Baqir mentioned that the Pakistani rupee strengthened when the US dollar was linked to the market rate.

He explained that during the Coronavirus pandemic, the Pakistani rupee fell 3.8% as opposed to those of other developing countries. He said Brazil's currency fell 21 percent.