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SBP announces to keep policy rate unchanged at 7%

SBP announces to keep policy rate unchanged at 7%
May 28, 2021

ISLAMABAD (92 News) - The State Bank of Pakistan (SBP) has announced its monetary policy on Friday, keeping the policy rate unchanged at 7 per cent.

According to the statement of central bank, the Monetary Policy Committee (MPC) was encouraged by the upward revision in the Fiscal Year 2020-21 growth forecast to 3.94%.

It confirmed the strength of the broad-based economic rebound underway since the start of the year, on the back of targeted fiscal measures and aggressive monetary stimulus, the central bank said.

“This positive momentum is expected to persist, translating into higher growth next year,” it said.

Inflation rose to 11.1% in April, propped up by the lingering impact of February’s electricity tariff increase as well as a pick-up in month-on-month food prices.

The MPC noted that supply shocks to food and energy still dominate, with a small number of energy and food items in the CPI basket accounting for about three-fourths of the rise in inflation since January.