The State Bank of Pakistan (SBP) on Saturday left its policy rate unchanged at 10 per cent for next two months, giving a positive message to stakeholders that the economy will perform better than last year with steady inflation and a stable exchange rate regime.
The interest rate, last increased in November 2013, has been kept unchanged at 10pc since January despite favourable fundamentals like low CPI (consumer price index), healthy foreign exchange reserves and a sharp decline in government borrowing.
The central bank predicts low inflation for this financial year, but it is still hesitant to make cheap credit available.
