State Bank of Pakistan Maintains Interest Rate at 5.75 Percent
Karachi: State Bank of Pakistan has issued the Monetary policy statement on September 24, 2016 stating that the YoY CPI inflation has been recorded almost doubled at 3.6 percent when compared with August 2015. However, the monetary policy will remain unchanged at 5.75%.
The central bank has shown a positive scenario based opinion that CPEC will leave good marks on the economy. The macro economic environment of Pakistan in conducive and stability has been witnessed in the foreign reserves of country. The increase in foreign exchange reserves are due to higher foreign remittances received in the country.
However, the central bank is keeping an eye on the current account deficit which is widening by the passage of the time. It has been stated in the monetary policy that:
The current account deficit is at the risk of widening further owing to declining exports and rising imports. As CPEC related projects are gathering momentum, the economy is projected to further expand at the back of improving industrial activity, especially construction and power generation, and rising demand for allied services.
The country is expecting a stability in foreign exchange, however, the increasing imports and decreasing exports pose a threat to the economy of the country.