The State Bank of Pakistan (SBP) has decided to to maintain key interest rate at 11%, surprising analysts who had expected another cut on the back of cooling inflation and the need to further push growth.
The decision was announced by SBP Governor Jameel Ahmed following the Monetary Policy Committee (MPC) meeting.
The SBP chief said that while inflation remained at its lowest in April, it rose slightly during May and June, driven largely by energy costs and the base effect.
The governor noted that inflation may rise moderately in the coming months due to continued pressures on energy prices.
On the external front, he said Pakistan’s exports have grown by 4%, adding that a rise in exports is essential to maintain current account stability.
The governor also confirmed a significant increase in worker remittances, which rose by $8 billion and contributed to keeping the current account in surplus.
Highlighting macroeconomic stability, he said the country met all its debt obligations on time and that foreign exchange reserves had increased by $5 billion even after making $26 billion in external payments.
This is a developing story and is being updated with further details.
