SINGAPORE — Pakistan’s central bank is in “wait-and-see” mode to give businesses the confidence they need to start investing again and keep people employed, Governor Reza Baqir said Wednesday.
After reducing by 625 basis points since March, the State Bank of Pakistan this week kept its policy rate unchanged at 7%. In its policy statement, the central bank said that business confidence and the growth outlook have improved as lockdowns eased due to a decline in the number of Covid-19 cases in Pakistan.
“Our policy stance right now, to catch an idiom, is ‘steady as she goes.’ We want to give industry and investors the confidence that with aggregate demand very tepid, a yawning output gap because of the sharp fall in external and domestic demand from Covid, we don’t see any demand-driven pressures on inflation in the near horizon,” Baqir said on CNBC’s “Street Signs Asia.”
With real interest