{"id":16996,"date":"2023-06-12T18:42:38","date_gmt":"2023-06-12T13:42:38","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=16996"},"modified":"2023-06-12T18:42:38","modified_gmt":"2023-06-12T13:42:38","slug":"sbp-maintains-interest-rate-at-21","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/sbp-maintains-interest-rate-at-21\/","title":{"rendered":"SBP maintains interest rate at 21%"},"content":{"rendered":"

SBP maintains interest rate at 21%. The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) decided against increasing the interest rate as it “views inflation to have peaked at 38% in May 2023, and barring any unforeseen developments, expects it to start falling from June onwards”.<\/p>\n

The MPC had met in April last in which it had jacked up the key policy rate by 100 basis points to a record high of 21% to control inflation.<\/p>\n

Since January 2022, the SBP had raised rates by a total of 1,150bps.<\/p>\n

The statement by the central bank today stated that “higher inflation outturns for April and May were broadly as anticipated”. It also “noted a sequential ease in inflation expectations of both consumers and businesses from their recent peaks”.<\/p>\n

The committee also expects “domestic demand to remain subdued amid tight monetary stance, domestic uncertainty and continuing stress on external account”.<\/p>\n

Read more:\u00a0SBP likely to maintain status quo in interest rate today<\/a><\/strong><\/em><\/p>\n

“In this backdrop, and given the declining m\/m trend, the MPC views inflation to have peaked at 38% in May 2023, and barring any unforeseen developments, expects it to start falling from June onwards,” the statement further said.<\/p>\n

On inflation, the SBP also said that it “remained broad-based” owing to the increase in food prices.<\/p>\n

“Importantly, core inflation maintained its upward trajectory, albeit at a slower pace, mainly indicating the second-round impact of higher food and energy prices and exchange rate depreciation amid still elevated inflation expectations,” said the SBP. However. central bank “expects that reduced demand-side pressures and ease in inflation expectations, along with moderating global commodity prices and high base effect, would help bring inflation down from June 2023 onwards”.<\/p>\n

“In this context, the MPC views that maintaining the current policy stance is necessary to bring inflation down to the medium-term target range of 5%\u20137% by the end of FY25,” it noted.<\/p>\n

The central bank also added that “broad money growth decelerated in May 2023 compared to last year, largely due to a substantial fall in private sector credit (PSC) and a contraction in net foreign assets of the banking system”.<\/p>\n","protected":false},"excerpt":{"rendered":"

SBP maintains interest rate at 21%. The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) decided against increasing the interest rate as it “views inflation to have peaked at 38% in May 2023, and barring any unforeseen developments, expects it to start falling from June onwards”. The MPC had met in April last in […]<\/p>\n","protected":false},"author":8,"featured_media":16997,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,9],"tags":[1881,7130,572,599],"class_list":["post-16996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-latest-news","tag-inflation","tag-monetary-policy-committee","tag-sbp","tag-state-bank-of-pakistan"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/16996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=16996"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/16996\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/16997"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=16996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=16996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=16996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}