Pakistan’s interest rate remains static despite economic pressures

The State Bank of Pakistan has revealed that the interest rates will stay the same. To top it off, there will be a rise in the interest rates in the coming future.

According to a news source published on October 31, the interest rates will be maintained at 22 percent. There will be a significant decline in inflation, especially considering the fuel price reductions.

According to the news source, the SBP Monetary Policy Committee noted that inflation rose in September.

The decision to keep the interest rate static is because of the decrease in fuel prices. The inflation rates are expected to decrease at the end of October.

This decreasing trajectory will continue in the first half of the second Fiscal year. The decrease in fuel prices is almost PKR 40 per liter.

Pakistan’s interest rate from April 2022 to October 2023 Source: tradingeconomics.com

The global oil prices play an important role in the economic stability. It remains volatile due to the Middle Eastern crisis. The SBP is continuing with a tight policy stance.

The committee thinks that the real policy rate will remain positive on a twelve-month forward-looking basis. The target of the committee is to bring down the inflation rates by a minimum of five to seven percent.

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