The State Bank has decided not to change the policy rate. It will remain at 7% and the interest rates banks charge on car or house loans will also mostly remain the same. The interest rates banks charge on loans depends on the State Bank’s policy rate. Also called the interest rate, it is a tool used by the central bank to keep inflation in check. The Monetary Policy Committee has decided to keep the policy rate the same as economic growth and the inflation outlook remain unchanged. While the rise in recent COVID-19 cases creates new risks, news emerging about vaccines being developed is encouraging, the committee noted. However, it has been noted that it could take a long time f
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