Updated on
Summary
State Bank of Pakistan (SBP) has announced monetary policy for next two months. The discount rate has been decreased by 50 basis points making the rate lower from 13 percent to 12.5 percent, reported Dunya News on Tuesday. According to a statement issued by SBP, inflation has decreased in the country and is expected to remain at 11 percent this year. Moreover, current account deficit and microeconomic indicators are suggesting the economy is in better shape therefore the discount rate has been lowered. SBP said the inflation could go up as prices of gas, electricity and commodities surge. The monetary policy states that global economic recovery could enhance foreign investment and exports of Pakistan. The surge in remittances and decrease in current account deficit by $1.1 billion have also affected the economy positively. SBP further said the enhancement in balance of payments depends on foreign investment. Portfolio investment surged while Foreign Direct Investment (FDI) lowered this year.
