close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
November 24, 2020

SBP keeps interest rate unchanged at 7pc: Rise in food prices increases inflation

Top Story

November 24, 2020

KARACHI: The central bank kept the benchmark interest rate unchanged at 7 percent on Monday while viewing growth and inflation expectations as well-anchored, although it says COVID-19 is still posing challenges to economic outlook. Though inflation numbers have been on the higher side primarily due to increases in food prices, these supply-side pressures are likely to be temporary and average inflation is expected to fall within the previously announced range of 7-9 percent for FY21. The SBP said external sector continues to strengthen, with the current account in FY21 Q1 recording the first quarterly surplus in more than five years. After remaining in positive territory for all four months of this fiscal year, the cumulative current account through October reached a surplus of $1.2 billion against a deficit of $1.4 billion in the same period last year. This turnaround was supported by an improvement in the trade balance and record remittances. Exports have recovered to their pre-COVID monthly level of around $2 billion in September and October, with the strongest recovery in textiles, rice, cement, chemicals, and pharmaceuticals.