SBP keeps policy rate unchanged at 9.5 pc

KARACHI: State Bank of Pakistan (SBP) on Friday kept its key policy rate unchanged at 9.5 percent.

The SBP said it faced two main challenges in reaching a policy decision: "to manage the balance of payment position and to contain the possible increase in inflation."

"The balance of payments position continues to be driven by low financial inflows and high debt payments," said the bank.

"A cumulative net capital and financial inflow of $34million during July - February, FY13 is insufficient to finance the external current account deficit of $700 million for the same period." (Reuters)