Monetary policy on May 16, discount rate likely to remain unchanged

KARACHI: State Bank of Pakistan (SBP) will announce country’s monetary policy on May 16, while the analysts said that the expectations relating to any cut in the discount rate has died down, Geo News reported on Tuesday here.

It may be recalled that the then acting Governor of SBP, Saeed Ahmad in a meeting with the industrialists had said that the entrepreneurs would be hearing good news relating to the interest rate in monetary policy, but the analysts believe that in the backdrop of surge in rate of inflation and IMF advise to further tighten monetary policy, all hopes of any slash in the interest rate have by now died down.

The analysts, therefore, predicted that the Central Bank’s discount rate for the last quarter of current fiscal year expected to remain unchanged at 10 percent.