KARACHI: The State Bank of Pakistan on Saturday announced the new monetary policy reducing the interest rate further by 25...
KARACHI: The State Bank of Pakistan on Saturday announced the new monetary policy reducing the interest rate further by 25 basis points.
The central bank reduced interest rate by 0.25 percent and brought it down to 5.75 percent.
A State Bank of Pakistan release noted, "In the current fiscal year as well, favorable trends in these factors are expected to yieldan overall surplus in the balance of payments with SBP’s foreign exchange reservesestimated to increase to over 4 months of import coverage; up from around 3 months atend-FY15. Going forward, foreign direct investment is projected to increase as the workon projects under China Pakistan Economic Corridor gains momentum. On the otherhand, owing to some anticipated uptick in commodity prices along with improvementsin domestic energy supplies exports receipts are likely to recover marginally."