Pakistan Central Bank Leaves Benchmark Rate on Hold at 10%


In its March 15th, 2014 meeting, Pakistan's Central Bank left the discount rate unchanged at 10 percent. Although consumer prices slowed for the third straight month in February and foreign exchange reserves increased noticeably, the economy still faces many challenges and a pro-active policy effort is required to continue to maintain the momentum.

Excerpt from the statement by the State Bank of Pakistan:

Almost all major economic indicators have moved in the desired direction over the past few months. Inflation has come down and growth in Large Scale Manufacturing (LSM) has been strong. Similarly, the fiscal deficit has been contained during the first half of the fiscal year while the private sector credit has increased. Moreover, reflecting positive sentiments prevailing in the market, the fiscal authority has been able to borrow long term and rupee has appreciated against the US dollar. Above all, the foreign exchange reserves of SBP, a key source of concern for some time, have increased noticeably. 
All-in-all confidence in the economy to rebound seems to have increased. This is visible in a marked improvement in various IBA-SBP survey-based indices capturing consumers’ confidence and perceptions of prevailing and expected economic conditions. 

Pakistan Central Bank Leaves Benchmark Rate on Hold at 10%


State Bank of Pakistan | Isabel Felino | isabel.felino@tradingeconomics.com
3/17/2014 2:57:55 PM