SBP keeps interest rate on hold at 13.25pc

KARACHI: The central bank kept its benchmark interest rate on hold at 13.25 percent on Monday as expected, noting that inflation risks are roughly balanced amid ‘a gradual slowdown’ in growth but key economic indicators had begun to improve since the July policy decision.

“The decision reflected the MPC’s (monetary policy committee) view that inflation outcomes have been largely as expected and inflation projections for FY20 have remained unchanged since the last MPC meeting on 16th July, 2019,” the SBP said in a statement. “The MPC also viewed that based on available information the current stance of monetary policy was appropriate to bring inflation down to the target range of 5–7 percent over the next twenty-four months.”