The rupee closed at 217.97 in the inter-bank market after gaining Rs1.95 against the dollar, the State Bank of Pakistan reported on Monday.

The SBP announced its decision to keep the interest rate unchanged and SBP warned of renewed inflation.

“Based on currently available info, growth could fall to around 2% in FY23, compared to the previous forecast of 3-4%,” the SBP’s Monetary Policy Committee said, “despite lower demand-side pressures, higher food prices could raise average headline inflation in FY23 somewhat above the pre-flood projection of 18-20%.”