The State Bank of Pakistan (MPC) Monetary Policy Committee said on Friday that the interest rate will remain at 7% over the next two months.
According to the statement, the MPC has been convinced by revising its growth forecast for fiscal year 21 to 3.94% since its last meeting in March.
“The MPC notes that this confirms the strength of the economic leap since the start of the fiscal year, based on targeted fiscal measures and aggressive monetary stimulus,” he said.
This upward trend is likely to continue, which will lead to stronger growth over the next year, the statement said.
The continuing impact of the electricity tariff hike in February, as well as rising food prices at monthly prices, partly due to the normal season around Ramadan, led to inflation of 11.1% year-on-year in April, according to the MPC.