SBP announces Monetary Policy Rate
The State Bank of Pakistan will announce the monetary policy link today.
According to the details, SBP Governor Dr Reza Baqir will address the media after announcing the policy rate, which has been kept unchanged since July at 7 per cent.
Following the novel coronavirus pandemic in Pakistan, the monetary policy became the focal point for economic activities after the SBP drastically slashed interest rate from mid-March 2020 till the end of the previous fiscal.
The upcoming monetary policy is highly important for the financial sector as well as the entire economy since inflation slipped slightly in December and could see further decline in January.
Consumer price index inflation eased to 8 percent in December from 8.3 percent in the previous month. The SBP wants to stick to its growth projection of 1.5 to 2.5 percent in FY2021, a decent recovery from the dizzying 0.4 percent contraction in FY2020 as a result of coronavirus lockdown.
“The Covid-related uncertainty poses both upside and downside risks to the SBP’s macroeconomic projections,” the SBP said in a latest report.
However, the latest SBP surveys reflect well-anchored inflation expectations of both businesses and consumers.
It is pertinent to mention here that on Thursday the Governor State Bank of Pakistan Dr Reza Baqir called on Prime Minister Imran Khan in Islamabad and briefed him on overall economic situation of the country.
The Governor SBP also apprised the Prime Minister about Roshan Digital Account, stability in exports and remittances and the expected increase in them due to government’s steps.