KARACHI: The State Bank of Pakistan (SBP) on Tuesday said the monetary policy will be announced on Friday.

SBP Governor Dr Reza Baqir will address the media after announcing the policy rate, which has been kept unchanged since July at 7 per cent.

The upcoming monetary policy is highly important for the financial sector as well as the entire economy since inflation slipped slightly in December and could see further decline in January.

Following the Covid-19 pandemic’s arrival in Pakistan, the monetary policy became the focal point for economic activities after the SBP drastically slashed interest rate from mid-March 2020 till the end of the previous fiscal. The central bank lowered the interest rate to 7pc from 13.25pc to pump cheaper money in the economy and help it activate its slowing growth.

Published in Dawn, January 20th, 2021