The State Bank of Pakistan (SBP) kept its policy rate unchanged on Wednesday at 11 per cent.
The central bank’s policy rate, after being slashed by 1,000bps from 22pc since June 2024 in seven intervals, was cut to 11pc in May. The bank had kept the rate unchanged on June 16 as well.
The Pakistan Business Forum (PBF) had claimed that both interest and exchange rates were being kept artificially high without economic justification, and appealed to Prime Minister Shehbaz Sharif to ensure a correction to support growth and stability.
The PBF also criticised the current interest rate of 11pc, calling it unjustifiable given that the Consumer Price Index-based inflation had dropped to 4pc. It urged the State Bank of Pakistan (SBP) to reduce the policy rate to at least 9pc in its upcoming monetary policy announcement scheduled for July 30.
More to follow
