ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Wednesday that there was scope for further cuts to Pakistan’s policy rate this year, pointing to declines in both average and core inflation.
“At present, the policy rate is at 11%. I am always very careful that the policy rate and the market-based exchange rate are very much the purview of the central bank, the State Bank of Pakistan, and the Monetary Policy Committee,” Aurangzeb said.
“Having said that, my own view, and I am giving my personal view here, is that given the current inflation, whether it is the average inflation or the core inflation, I do think there is room to do more in terms of the policy rate, and I am very hopeful that during the course of this calendar year we will see movement in the policy rate going south,” he added.
The minister’s remarks come as markets anticipate further monetary easing by the central bank to support economic growth after a period of tight policy aimed at curbing inflation.
The State Bank of Pakistan last reduced its benchmark rate to 11% earlier this year following sustained disinflationary trends.
This is a developing story and is being updated with more details.
