KARACHI: The State Bank of Pakistan will announce the monetary policy on Monday September 21, said a press release.

The Monetary Policy Committee of the SBP will meet on the same day and Governor Dr Reza Baqir will address a press conference after the meeting.

The last monetary policy was announced on June 25 and the SBP reduced the policy rate by 100 basis points to seven per cent. Since March, the interest rate has been drastically cut by a cumulative 6.25pc to pump maximum liquidity in the economy facing tough situation after emergence of Covid-19.

In March, the policy rate stood at 13.25pc.

According to the SBP, inflation outlook improved while the domestic economic slowdown continues and downside risks to growth have increased.

In its latest report, the Asian Development Bank projected economic growth for the country at 2pc for FY21. Most of the analysts did not see any sign of change in the policy rate but few said it may go high to attract foreign investment.

Published in Dawn, September 17th, 2020