SBP likely to keep policy rate on hold today
A logo of the State Bank of Pakistan (SBP) is pictured on a reception desk at the head office in Karachi, Pakistan July 16, 2019. — Reuters/File Market talk suggests policy rate will remain unchanged at 15%. SBP had increased policy rate by 800bps since Sept 2021. Today’s MPC meeting is first after appointment of new SBP governor. KARACHI: The State Bank of Pakistan (SBP) is expected to maintain the benchmark interest rate at 15% in its monetary policy statement (MPS) being announced today (Monday). The central bank is highly likely to maintain the interest rate -- it raised the rate by 125 basis points in its last meeting in July to 15%, the highest since November 2008 -- despite the fact that inflation has remained elevated. So the status quo will continue to support economic recovery in line with the coalition government’s policies. Financial pundits and market players have developed consensus that the central bank will maintain the rate at the current level of 15% for t