The State Bank of Pakistan (SBP) surprised financial markets on Thursday by leaving its benchmark policy rate – the cost of bank lending – unchanged at 22%, against the expectation of an aggressive hike of up to 300 basis points. In a statement, the SBP said that the Monetary Policy Committee (MPC) decided to maintain the policy rate at 22%. 1/4 Monetary Policy Committee (MPC) decided to maintain the policy rate at 22 percent in its meeting today. https://t.co/Rns1WF4AsB#SBPMonetaryPolicy pic.twitter.com/HT9w9wWZAU — SBP (@StateBank_Pak) September 14, 2023As such, the real interest rates continue to remain in positive territory on a forward-looking basis. "This has helped in narrowing the gap between the interbank and open market exchange rates," the bank maintained.
