KARACHI: The State Bank of Pakistan has kept its policy rate unchanged at 10 per cent for the next two months.
The central bank in its monetary policy announcement on Saturday gave a number of reasons for maintaining the status quo, including a possible increase in inflation because of flood damage, cut in subsidy on electricity, development cess on gas and the ongoing political impasse.
“Although actual low inflation might weigh positively on market sentiments, it is the future path of inflation that matters for monetary policy decision,” the SBP said.
The interest rate was last changed in November last year.
Published in Dawn, September 21st, 2014