KARACHI – The State Bank of Pakistan (SBP) has decided to maintain the policy rate at 9.75 percent for the next two months amid higher inflation and surge in Omicron cases in the country.
For the decision, the Monetary Policy Committee (MPC) considered the measures taken to lower inflation and keep the ongoing economic recovery sustainable.
“These measures include a cumulative 275 basis point increase in the policy rate, higher bank cash reserve requirements, regulatory tightening of consumer finance, and curtailment of non-essential imports,” the central bank said in a statement.
Since the last meeting on 14th December 2021, several developments suggest that these demand moderating measures are gaining traction and have improved the outlook for inflation.
Recent economic growth indicators are appropriately moderating to a more sustainable pace, it said.
“While year-on-year headline inflation is high and will likely remain so in the near term due to base effects and energy prices, the momentum in inflation has slowed with month-on-month inflation flat in December compared to a significant rise of 3 percent in November. Inflation expectations of businesses have also declined considerably,” read the official press release.
The current account deficit appears to have stopped growing since November and the non-oil current account balance is expected to achieve a small surplus for FY22.
SBP said that the enactment of the recent Finance (Supplementary) Act, 2022 represents significant additional fiscal consolidation compared to the budget and has lowered the outlook for inflation in FY23.
The MPC was of the view that current real interest rates on a forward-looking basis are appropriate to guide inflation to the medium-term range of 5-7 percent, support growth, and maintain external stability.
In reaching its decision, the MPC considered key trends and prospects in the real, external and fiscal sectors, and the resulting outlook for monetary conditions and inflation.
Pakistani currency remains unchanged against US Dollar and other currencies on April 22, 2024 Monday in open market.
US dollar was being quoted at 277.4 for buying and 280.4 for selling.
Euro comes down to 293.2 for buying and 296.2 for selling while British Pound hovers at 339.5 for buying, and 343 for selling.
UAE Dirham AED was at 75 and Saudi Riyal's new rate was at 73.25.
Currency | Symbol | Buying | Selling |
---|---|---|---|
US Dollar | USD | 277.4 | 280.4 |
Euro | EUR | 293.2 | 296.2 |
UK Pound Sterling | GBP | 339.5 | 343 |
U.A.E Dirham | AED | 75 | 75.8 |
Saudi Riyal | SAR | 73.25 | 73.95 |
Australian Dollar | AUD | 181 | 182.8 |
Bahrain Dinar | BHD | 740.55 | 748.55 |
Canadian Dollar | CAD | 201 | 203 |
China Yuan | CNY | 38.47 | 38.87 |
Danish Krone | DKK | 39.78 | 40.18 |
Hong Kong Dollar | HKD | 35.53 | 35.88 |
Indian Rupee | INR | 3.33 | 3.44 |
Japanese Yen | JPY | 1.86 | 1.94 |
Kuwaiti Dinar | KWD | 903.11 | 912.11 |
Malaysian Ringgit | MYR | 58.08 | 58.68 |
New Zealand Dollar | NZD | 164.22 | 166.22 |
Norwegians Krone | NOK | 25.61 | 25.91 |
Omani Riyal | OMR | 723.2 | 731.2 |
Qatari Riyal | QAR | 76.45 | 77.15 |
Singapore Dollar | SGD | 204.5 | 206.5 |
Swedish Korona | SEK | 25.31 | 25.61 |
Swiss Franc | CHF | 305.47 | 307.97 |
Thai Bhat | THB | 7.56 | 7.71 |
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