SBP keeps key discount rate unchanged at 10pc

ISLAMABAD: State Bank of Pakistan (SBP) kept its key discount rate unchanged at 10 percent on Saturday, SBP spokesman said, following a drop in consumer prices and a rally by the rupee currency.

The rupee has appreciated by more than 7 percent since the beginning of the month due to an increase in foreign investment and remittances from overseas Pakistanis as well as several foreign loans aimed at propping up the economy.

"The interest rate will stay unchanged at 10 percent for the next two months," the spokesman said.

The Finance Ministry has also attributed the currency´s recovery to punitive action against exporters withholding export receipts abroad and warnings to foreign exchange speculators. (Reuters)