KARACHI – The State Bank of Pakistan (SBP) has kept the interest rate unchanged at 7% for the next two months.
SBP took the decision on Monday as the country is reeling from the effects of the Covid-19 pandemic.
Normally, the State Bank revises its policy rate up or down or keeps it unchanged in relation to the inflation reading and economic activities.
Low inflation mainly leads to a reduction in the policy rate for ramping up economic activities and vice versa.
The rate is left unchanged at a higher level to tame inflation or on the lower side to support economic growth.
