SBP Maintains Key Interest Rate at 5.75 Percent

The SBP MPC has kept the Target Rate at 5.75 Percent.

Key points from the governers statement were

• Headline Inflation to be Lower than 6 percent
• Inflation in FY18 to be between 4.5 to 5.5 percent on crude oil prices
• Credit Offtake to remain higher
• Current Account Deficit will be manageable
• Remittances to be within target
• LSM growth to be higher in June to May period
• Current Account deficit reaches 12 billion in FY17
• Exports were lower, but Imports were higher on CPEC and non CPEC products
• FY17 SBP Reserves down 2 Billion to 16 Billion
• Exports likely to grow in FY18
• Infection Ratio of loans of corporate sector at their lowest
• Over all growth at a 10 Year high
• LSM to grow by 5.3 Percent in FY17
• Growth witnessed in Real Sector
• Report on devaluation of Rupee to be completed and Submitted to Finance Ministry by Next Week

Link to MPS