Governor SBP does not Intend to Raise Interest Rates
Raza Baqir made it clear in an interview to Bloomberg that we will not raise interest rates futher.
State Bank of Pakistan (SBP) Governor Raza Baqir has expressed his intention not to raise interest rates further in the country.
In an interview with Bloomberg, Governor SBP Governor Raza Baqir further said that despite a slight increase in interest rates, the country’s growth rate is likely to remain at 5% during the current financial year.
Read also
Foreign direct investment plunges by 12.3pc in July-November
APG plant in Faisalabad: Gas crisis likely to end up helping industrial units
Raza Baqir also said that we do not want to delay and are trying to ensure that inflation expectations remain encouraging, so we have raised interest rates by a total of 275 basis points since September.
“We have also hinted at the future in the Monetary Policy Statement that we can take a break now, we are going to take a break to assess the impact of the steps we have already taken,” the SBP governor said.
According to a Bloomberg report, Pakistan has the highest inflation rate in the region, with the Pakistani rupee being the worst of the 13 Asian currencies over the past six months.
It may be recalled that in the last few days, the central bank had increased the interest rate by one per cent, after which the interest rate had gone up from eight point seven five to nine point seven five.
