WEBDESK: The State Bank of Pakistan has announced that the policy interest rate will remain unchanged at 11% for the next two months.
SBP Governor Jameel Ahmed made the announcement during a press conference held in Karachi. He said that the decision was taken after reviewing all major economic indicators.
He noted that inflation rose slightly in May and June. The current inflation rate stands at 7.2 per cent.
Governor Ahmed said that the country has seen positive trends in exports and remittances. Remittances remained above $38 billion in the last fiscal year, compared to around $30 billion the year before.
He added that all external payments were made on time. Foreign exchange reserves increased by about $5 billion compared to the previous year. The growth rate for the last fiscal year was 2.7 per cent.
For the current fiscal year, the SBP expects growth in agriculture to improve overall economic performance. Inflation is likely to remain between 5 per cent and 7 per cent.
He warned that energy prices may rise further. Economic activity has led to an increase in petroleum imports.
Governor Ahmed also reported that exports grew by 4%. He said remittances may exceed $40 billion this fiscal year. GDP growth is expected to be between 3.25 per cent and 4.25 per cent.
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