The State Bank of Pakistan, while announcing its monetary policy on Monday, has decided to maintain the policy rate at 11.50 percent.
According to the announcement made after the Monetary Policy Committee meeting, the central bank neither increased nor decreased the interest rate, after which the policy rate will remain at 11.50 percent.
The eyes of economists and financial markets were focused on the decision as different trends have been seen in terms of inflation, foreign exchange reserves and economic growth in recent months.
The decision to keep the interest rate unchanged indicates that the central bank wants to further assess the current economic situation and is monitoring inflation and other economic indicators for future decisions.
According to analysts, maintaining the policy rate at the current level is not expected to lead to any immediate major changes in business activity, investment and borrowing costs, while financial markets have also received signals of policy continuity.
The detailed statement to be issued by the State Bank will shed more light on inflation trends, economic growth, the external sector and the economic prospects in the coming months.
