Pakistan Interest Rate

The benchmark interest rate in Pakistan was last recorded at 9.50 percent. Interest Rate in Pakistan is reported by the State Bank of Pakistan. Historically, from 1992 until 2013, Pakistan Interest Rate averaged 12.70 Percent reaching an all time high of 20 Percent in June of 1997 and a record low of 7.50 Percent in November of 2002. In Pakistan, interest rates decisions are taken by the State Bank of Pakistan. The official interest rate is the discount rate. This page includes a chart with historical data for Pakistan Interest Rate.

FROM TO COMPARE
Pakistan Interest Rate

Money Last Previous Highest Lowest Forecast Unit Trend
Interbank Rate 9.33 May/2013 9.43 17.42 1.21 9.52 May/2013 Percent Trend
Money Supply M0 2438268.62 Apr/2013 2424995.09 2483532.00 1413617.11 2457249.27 May/2013 PKR Million Trend
Money Supply M1 6279433.00 Apr/2013 6183591.00 6279433.00 3168848.00 6271261.91 Apr/2013 PKR Million Trend
Money Supply M2 8203344.00 Apr/2013 8119626.00 8203344.00 4431502.00 8210294.43 Apr/2013 PKR Million Trend
Money Supply M3 10546396.00 Apr/2013 10451388.00 10546396.00 5548454.00 10526976.12 Apr/2013 PKR Million Trend
Interest Rate 9.50 May/2013 9.50 20.00 7.50 9.25 Jun/2013 Percent Trend

State Bank of Pakistan Keeps Monetary Policy Unchanged
STATE BANK OF PAKISTAN | Duarte Ricardo | duarte.ricardo@tradingeconomics.com  |  4/12/2013 1:49:38 PM


The Central Board of Directors of SBP has decided to maintain the policy rate unchanged at 9.5 percent.

Excerpt from the statement by the State Bank of Pakistan:

 

Real returns on rupee denominated assets have marginally increased due to a substantial decline in inflation. Moreover, led by a depreciation of 5.2 percent in the Nominal Effective Exchange Rate (NEER), the Real Effective Exchange Rate (REER) has also depreciated by 4.2 percent during July – February, FY13. This bodes well for the competitiveness of the external trade sector. However, real cost of borrowing has increased, which may be undesirable in the wake of declining private investment and low growth in the economy.
 
Despite continued energy shortages and substantial fiscal borrowings from the banking system, credit extended to private businesses has shown some nascent recovery. During July – February, FY13, loans to private businesses have increased by Rs173.3 billion as opposed to Rs56.8 billion during the same period of last year. This has helped in a modest growth of 2.9 percent in the Large Scale Manufacturing (LSM) sector during July – February, FY13 compared to 1.9 percent in the corresponding period of last year.
 
A cumulative decline of 450 basis points in the policy rate of SBP since the beginning of FY12 has played a role in this uptick. Moreover, an analysis of the balance sheets of the main sectors supports this assessment. Thus, both the decline in inflation and the need to encourage further borrowings by the private sector point towards continuation of current monetary policy stance and a possible reduction in the policy rate. However, the current balance of payments position and a structural imbalance in fiscal accounts suggest vigilance. 
 
In conclusion, given the risks to the balance of payments position, the Central Board of Directors of SBP has decided to keep the policy rate unchanged at 9.5 percent.

 


ARCHIVE
Pakistan Cuts Interest Rate to 9.5% in December of 2012 The Central Board of Directors of SBP has decided to reduce the policy rate by 50 basis points to 9.5 percent. 2013-01-18



Interest Rate | Notes

The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.



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