ISLAMABAD: Pakistan’s central bank left interest rates unchanged to contain a rebound in inflation and support the rupee.
The State Bank of Pakistan kept the target policy rate at six per cent, the move was predicted by analysts seeing a cut to 5.5 per cent, according to Khaleej Times.
“The rise in inflation was anticipated and the inflation outlook for the remaining months of fiscal year ending June 30 remains largely unchanged,” the State Bank of Pakistan said. The central bank expects average inflation to remain between three per cent and four per cent in the period, according to a statement in January.
The report said Prime Minister Nawaz Sharif’s administration is looking to boost growth to a nine-year high without stoking inflation that accelerated to the fastest pace in 14 months this February.“Pakistan’s interest rates are currently at rock-bottom levels and we also do not expect a hike this year amid weak global oil and other commodities,” Fahad Hussain Khan, an analyst said.
