The State Bank of Pakistan (SBP) has decided to keep the interest rate unchanged at 7 percent.
The central bank announced in a statement issued on Friday about the new monetary policy as approved by the Monetary Policy Committee (MPC), in its meeting held on May 28, 2021. The central bank has kept the interest rate unchanged at 7% for the fifth time.
Since its last meeting in March, the MPC was encouraged by the further upward revision in the FY21 growth forecast to 3.94 percent. The MPC noted that this confirms the strength of the broad-based economic rebound underway since the start of the fiscal year, on the back of targeted fiscal measures and aggressive monetary stimulus. This positive momentum is expected to persist, translating into higher growth next year.