E-Paper | July 30, 2026

Monetary policy on 16th

The Newspaper's Staff Reporter Published
3
Since inflation is still high, the financial sector does not expect any downward change in the policy rate. — APP/File
Since inflation is still high, the financial sector does not expect any downward change in the policy rate. — APP/File
comments
Whatsapp Channel
Add Dawn as a trusted source
Google Preferred Source

KARACHI: The State Bank of Pakistan (SBP) will announce monetary policy on July 16, which will be the first under the new governor.

A press release issued on Friday said SBP Governor Dr Reza Baqir will unveil the decision of the Monetary Policy Committee at a press conference.

Since inflation is still high, the financial sector does not expect any downward change in the policy rate, which has been on the rise for more than a year and currently stands at 12.25 per cent. The SBP believes the high interest rate is a must to get control over the rising inflationary pressure in the economy.

However, the banking sector is still cautious while investing in long-term government papers fearing the interest rate may go up further. Banks invested mostly in three-month treasury bills.

Published in Dawn, July 13th, 2019

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.
Business
3

Read more

HisMaster'sVoice
Jul 13, 2019 11:12am
You double interest rates and expect industry and commece to flourish, and are shocked when it doesn't. Because the incumbents and their sponsors have never had to 'earn' money. It was just allocated or gifted. Real world is a tough balancing act.
Recommend 0
Vikas
Jul 13, 2019 12:13pm
“Downward” change in interest rates??? Does not expect?? Is this even a news item?? How can the rates be reduced in Pakistan? And if someone, anyone was “expecting” so, seriously this is the problem with Pakistan. No one seems to understand economics. In this economic climate someone (even one) person was expecting a rate cut shows the lack of basic economic knowledge in Pakistan.
Recommend 0
Shazad
Jul 13, 2019 10:55pm
Industries don't flourish during the stabilization phase. All this was expected even while the PML-N was in power. They ruined the external account by subsidizing imports using borrowed dollars. An adjustment had to be made, it would lead to stagflation and that is exactly what happened.
Recommend 0

Most Popular

01
02
03
04
05
06
07
08
09

Latest Stories

Opinion

Editorial

AJK elections
29 Jul, 2026

AJK elections

CONSIDERING the political unrest that has rocked Azad Jammu and Kashmir in the recent past, free and fair general...
Still vulnerable
29 Jul, 2026

Still vulnerable

THE State Bank’s decision to hold the policy rate at 11.5pc is a prudent response to the heightened risks the...
Guarding the past
29 Jul, 2026

Guarding the past

THE return of 513 smuggled archaeological artefacts from the US is a welcome homecoming for objects that should ...
Lull in fighting
Updated 28 Jul, 2026

Lull in fighting

AFTER two weeks of escalating violence, the US has halted its strikes on Iran, with Tehran also silencing it guns....
Water policy
28 Jul, 2026

Water policy

THE country is caught in a crisis where there too much water at the wrong time and too little when it is most ...
Ending hepatitis
28 Jul, 2026

Ending hepatitis

WORLD Hepatitis Day is being observed under the theme ‘Hepatitis: Let’s break it down’, a call to remove the...
Dawn News English Podcasts
Subscribe