September 21, 2023 (MLN): In response to rumours regarding an elevated interest rate, the Governor of the State Bank of Pakistan (SBP) Jameel Ahmed has clarified that there will not be more hikes in the policy rate.
While speaking to journalists, he said that the interest rate is already at the mark of 22% which is quite high, according to the local news report.
The Monetary Policy Committee (MPC) of the SBP in its meeting held on September 14 decided to keep the policy rate unchanged at 22%.
The decision came in contrast with the market expectations wherein the majority of market participants were in consensus on a rate hike by 100-200bps.
This decision considers the latest inflation outturn reflecting the continuing declining trend in inflation from its peak of 38% in May to 27.4% in August 2023.