In line with market expectations, the State Bank of Pakistan left the benchmark interest rate unchanged at 9.75% for the next one and half month on Monday. Conflicting movements in economic indicators suggest that the worst is yet to come but still the market had developed consensus that the policy rate would remain unchanged. In its monetary policy announcement on November 19, the State Bank of Pakistan increased the number of annual monetary policy meetings to eight from six. The monetary policy is an effective tool with the central bank that is used to curb inflation. The SBP announces a target rate every two months, which serves as the benchmark for overnight funds in the inter-bank market

Source: The Express Tribune January 24, 2022 20:26 UTC