The State Bank of Pakistan (SBP) on Monday decided to maintain the status quo by keeping the key policy rate unchanged at 22% for the seventh time in a row.
In its meeting today, the Monetary Police Committee (MPC) noted that the macroeconomic stabilisation measures are contributing to considerable improvement in both inflation and external position, amidst moderate economic recovery.
“However, the MPC viewed that the level of inflation is still high. At the same time, global commodity prices appear to have bottomed out with resilient global growth,” as per a statement issued following the meeting.
The MPC said recent geopolitical events have also added uncertainty about their outlook. Moreover, the upcoming budgetary measures may have implications for the near-term inflation outlook, it added.
On balance, the committee stressed on continuation of the current monetary policy stance to bring inflation down to the target range of 5 to 7% by September 2025.
More to follow..
