In response to swirling speculations regarding the possibility of yetanother interest rate hike, Jameel Ahmed, the Governor of the State Bank ofPakistan (SBP), took the opportunity to set the record straight. Asreported by ARY News on Thursday, Governor Ahmed made it unequivocallyclear that there would be no further increases in the policy rate. Duringan engagement with journalists, he emphasized that the current interestrate stands at a substantial 22%, a figure that is undeniably high in itsown right.
On that very Thursday, the State Bank of Pakistan (SBP) made an officialannouncement, and the verdict was resolute: the key policy rate wouldremain unaltered at 22 percent. This determination was the result of acarefully conducted meeting by the bank’s Monetary Policy Committee (MPC).
In their official statement, the MPC acknowledged the recent upsurge inglobal oil prices but remained optimistic about the trajectory ofinflation, especially in the latter half of the year.
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Furthermore, the MPC’s assessment underscored the importance of their tightmonetary policy stance, the promising outlook for agriculture, and thepositive impact of recent administrative and regulatory reforms. Thesefactors collectively contribute to their confidence in achieving themedium-term inflation target, offering a glimmer of hope amidst theeconomic uncertainties
