The Governor of the State Bank of Pakistan, Dr Reza Baqir announced that the central bank has decided to maintain the policy rate at 7% for the next two months.
In a statement on Tuesday, Dr Reza Baqir has said that at its meeting on 27th July 2021, the Monetary Policy Committee (MPC) decided to maintain the policy rate at 7%. He said that in reaching its decision, the MPC considered key trends and prospects in the real, external and fiscal sectors, and the resulting outlook for monetary conditions and inflation.
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Addressing a press conference along with SBP officials, the Governor has said that this is the 5th consecutive time that the central bank has decided to maintain the policy rate. The policy rate is lower than the inflation rate, he said.
Governor Reza Baqir further stated that the reason for keeping the real interest rate negative is a focus on growth. He said that the current account deficit of Pakistan is the lowest it has been in the last 10 years.
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