State Bank of Pakistan Maintains Key Interest Rate at 22% for Fifth Time in Row

Mon Jan 29 2024
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ISLAMABAD: The State Bank of Pakistan (SBP) on Monday held its key rate at 22% for the fifth policy meeting in a row.

Governor SBP Jameel Ahmed on Monday said that from last monetary policy statement the external position has improved. The current account deficit has been contained and it is likely that deficit will be around 0.5% to 1.5% of GDP.

He said that the current account deficit has been around 0.7% of the GDP in December lowered from 4.6% compared to the corresponding period last year.

The governor said that the inflation for the current fiscal year has been revised to 23-25% from earlier estimates of 20-22%.

Pakistan’s inflation target

He said that the inflation target in September 2025 would be around 5-7% from earlier it was estimated that this numbers might be achieved in June 2025.

Jameel Ahmed added that inflation in December was 29%, it would be lowered once announced for January.

He said that from March inflation would drop sharply.

We are expecting that GDP growth would be maintained between 2 to 3% for FY24, he added.

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