6 months ago

Pakistan key policy rate unchanged at 15pc

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Pakistan's central bank on Monday kept its key policy rate unchanged at 15 per cent at a scheduled meeting of its monetary policy committee, the bank said in a statement.

Pakistan has been facing an economic meltdown with a balance of payment crisis and foreign reserves falling to barely one month's worth of imports, a situation which has been worsened by devastating floods.

The State Bank of Pakistan (SBP) had kept settings unchanged at its previous meeting in August, reports Reuters.

"Based on currently available information, the MPC was of the view that the existing monetary policy stance strikes an appropriate balance between managing inflation and maintaining growth in the wake of the floods," the bank said.

This was the State Bank of Pakistan's (SBP) first policy decision since devastating floods in late August killed more than 1,700 and caused about $30 billion in damage.

GDP growth could fall to around 2.0 per cent in the financial year 2023 compared to the previous forecast of 3.0-4.0 per cent before the floods, the central bank statement said.

Moody's downgraded Pakistan credit rating to Caa1 from B3 last week.

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