Saturday, March 26, 2011

Pakistan Central Bank Holds Discount Rate at 14.00%

The State Bank of Pakistan kept the discount rate at 14.00% as its double digit inflation showed signs of easing. Pakistan reported inflation of 12.9% in February this year (14.2% in January), down from the highs of 15.5% in December last year. The Bank attributed the decline in inflation to a dissipation of the flood effect on food prices, incomplete pass-through of high oil prices, and a reduction and containment of the stock of government borrowings. The Pakistan government forecasts GDP growth of 2.5% in the year to June 2011, down from its original target of 4.5%.


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