On Friday, the State Bank of Pakistan (SBP) held interest rates at 7% as it tried to balance the economic headwinds of the Covid-19 pandemic with the need to combat inflation.
“The [Monetary Policy Committee] felt that the existing accommodative stance of monetary policy remained appropriate to support the nascent recovery while keeping inflation expectations well-anchored,” SBP said in a statement.
It is the third time that the central bank has held its key policy rate unchanged since lowering it by 625 basis points, down from 13.25 per cent when last February’s global pandemic struck its economy.
The MPC also noted that since the committee’s last meeting in November, 2020, “domestic recovery has gained some further traction”
“near future […] interest rate will remain the same and if, in the future, there is a change it wouldn’t be like [in the past] when the interest rate would see a sudden and drastic change. The change would be [introduced] in and orderly manner.”the interest rate would remain the same in the immediate future […] even if there is a shift in the future, it will not be as [in the past] when the interest rate would adjust abruptly and dramatically. The change will be [introduced] in an organised way.