State Bank keeps policy interest rate 575

KARACHI: State Bank of Pakistan kept its key policy rate unchanged at 5.75 percent on Saturday, citing steady remittances and low oil prices.State Bank of Pakistan Governor Ashraf Mahmood Wathra also told a news conference that foreign direct investment is projected to increase as work on projects under the $46 billion China Pakistan Economic Corridor gains momentum.In the previous Monetary Policy Statement in May the interest rate was reduced by 25 basis points from 6 per cent to 5.75pc.The SBP announces a target rate every two months, which serves as the benchmark interest rate for overnight funds in the interbank market. It is one of the tools that the central bank uses to ensure price stability in the economy.