Monetary Policy to Remain Unchanged

It was recently revealed that the State Bank of Pakistan is about to release a new monetary policy. While many were expecting that the discount rate would change with the upcoming monetary policy, the IMF and the inflation rate did not allow this to happen. This is the reason why it was recently revealed that the monetary policy and the discount rates are going to remain unchanged.

The monetary policy for the months of May and June will be announced on May 17, 2014.

Now analysts claim that the State Bank of Pakistan is going to maintain status quo in their May review. They have taken the decision on the basis of near-to medium-term inflation outlook.

The spokesperson said, “Given the likely inflation path and the state of foreign exchange reserves of the central bank, I believe the SBP will opt for keeping the interest rate on hold for now. No change, in my view.”

Another expert also said, “Given the likely inflation path and the state of foreign exchange reserves of the central bank, I believe the SBP will opt for keeping the interest rate on hold for now. No change, in my view.”

Between July 1, 2013 and April 25, 2014, money supply increased by Rs476 billion as compared to Rs654 billion for the same period in the previous fiscal year. 

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Posted by Ahmad Mehdi on May 14 2014. Filed under Business, Latest News, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.