SBP Governor responds over media reports of Interest rates hike
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In response to swirling speculations regarding the possibility of yet another interest rate hike, Jameel Ahmed, the Governor of the State Bank of Pakistan (SBP), took the opportunity to set the record straight. As reported by ARY News on Thursday, Governor Ahmed made it unequivocally clear that there would be no further increases in the policy rate. During an engagement with journalists, he emphasized that the current interest rate stands at a substantial 22%, a figure that is undeniably high in its own right.
On that very Thursday, the State Bank of Pakistan (SBP) made an official announcement, and the verdict was resolute: the key policy rate would remain unaltered at 22 percent. This determination was the result of a carefully conducted meeting by the bank's Monetary Policy Committee (MPC).
In their official statement, the MPC acknowledged the recent upsurge in global oil prices but remained optimistic about the trajectory of inflation, especially in the latter half of the year.
Furthermore, the MPC's assessment underscored the importance of their tight monetary policy stance, the promising outlook for agriculture, and the positive impact of recent administrative and regulatory reforms. These factors collectively contribute to their confidence in achieving the medium-term inflation target, offering a glimmer of hope amidst the economic uncertainties
