SBP keeps interest rate at 7pc for 2 months

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KARACHI: The State Bank of Pakistan (SBP) has announced to keep the interest rate at the current level of 7 per cent or the next two months.

According to a statement issued by the SBP on Monday, the recovery of the economy is gaining momentum and business sentiments have further improved.

It added that the second wave of coronavirus poses significant risks of slowing down the country’s economic growth.

The central bank said that the inflation was a result of food supply pressure, which will be temporary.

It added that inflation is likely to remain between seven percent and nine per cent during the ongoing financial year.