SBP keeps interest rate unchanged

The State Bank on Monday kept the interest rate unchanged at 22 per cent and increased the inflation target in the range of 23 to 25 per cent for the current fiscal year. “The Monetary Policy Committee (MPC) deci­ded to maintain the policy rate at 22pc. The frequent and sizeable adjustments in administered energy prices have slowed down the pace of decline in inflation anticipated earlier, besides impeding a sustained decrease in inflation expectations,” SBP Governor Jameel Ahmad said while revealing the monetary policy. Incorporating the inflation in the first half (July-December) of FY24, the exp­ected significant dec­line in the second half and the evolving risks, the MPC expects average inf­la­tion to fall in the range of 23-25pc during this fiscal year and continue to trend down noticeably in FY25, the central bank said. Earlier, the State Bank projected inflation in the range of 20-22pc.