SBP Maintains Policy Rate @ 9.75%

Web Desk — In a meeting held on January 24, 2021, in Karachi, the Monetary Policy Committee of the State Bank of Pakistan (SBP) decided to keep the policy rate unchanged at 9.75 percent.

SBP’s decision was largely in line with market expectations, where most market participants were expecting SBP to keep its policy rate unchanged

While announcing the monetary policy, State Bank Governor Raza Baqar said steps were being taken to reduce inflation and sustainable economic growth. “We have no control over oil prices, inflation is expected to slow down, prices stabilize on a monthly basis and the bank trade deficit is expected to decrease,” he added.

Raza Baqir said that the country’s growth was stable. Inflation did not increase in November and December. With the passage of the Act, the budget deficit would be further reduced. He said the pace of inflation would be slightly reduced, adding that If demand was kept under control then the pace of inflation would also come down.

The Governor SBP further said that from July to December this year, the inflation rate was 9.8%, the current account deficit was recorded at 93 1.93 billion in December and the trade deficit would decrease in the coming days.