ISLAMABAD: The State Bank of Pakistan has decided to maintain its key policy interest rate at 13.25 percent, announced the central bank’s president, Reza Baqir on Tuesday.
Addressing a press conference on Tuesday, SBP Governor Reza Baqir said that the central bank has decided to maintain the interest rate and has kept its projection for inflation unchanged at 11-12% for the full fiscal year 2020.
The SBP announces a target rate every two months, which serves as the benchmark interest rate for overnight funds in the interbank market. It is one of the tools the central bank uses to ensure price stability in the economy.
The central bank has kept its projection for inflation unchanged at 11-12% for the full fiscal year 2020.
Inflation reading came at 12.63% for the previous month of December, according to the Pakistan Bureau of Statistics (PBS).
This is the third bi-monthly monetary policy in which the central bank has left the benchmark interest rate unchanged.