Pakistan Central Bank Seen Holding Rates Steady Amid Oil Rally
Pakistan's central bank is expected to maintain interest rates steady, according to a Reuters poll, as the recent oil price rally clouds the inflation outlook.
The State Bank of Pakistan (SBP) is likely to keep its policy rate unchanged at 13.5% at its upcoming monetary policy meeting, the poll of 15 economists showed. This decision comes as the global oil prices have surged due to the ongoing conflict in the Middle East, which could lead to higher inflation in Pakistan.
The country's inflation rate has been rising steadily over the past few months, driven by higher food and energy prices. The SBP has been closely monitoring the inflation trend and has taken steps to control it, including increasing interest rates.
The poll also showed that the economists expect the SBP to keep its cash reserve requirement (CRR) unchanged at 5% and the statutory liquidity ratio (SLR) at 5.5%.
The SBP's decision on interest rates will have a significant impact on the country's economy, particularly on the stock market and the currency market. A higher interest rate could lead to a stronger currency and higher borrowing costs, while a lower interest rate could lead to a weaker currency and lower borrowing costs.
The SBP's monetary policy meeting is scheduled to take place on March 10, and the decision on interest rates will be announced on the same day.