The Central Bank left key benchmark interest rates unchanged as the impact of the worst floods in decades was expected to have little effect on the economy.
The bank in its monthly review of Monetary Policy said that inflation remained low as industrial output expanded.
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rnThe bank in a statement said that initial assessment of the floods showed that the projected annual GDP growth of 5.5% would be little affected. rn
rnThe foreign exchange market has also been stable as the Rupee depreciated by only .5% in the last few months. rn
rnThe flow of donor money is expected to further ease pressure on the currency.rn
rnThe bank left key rates unchanged this month after slashing them by 150 basis points so far this year to spur the economy. rn
rnThree-month Treasury Bills are around 8.5%, a level last seen in the mid-seventies.
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