State Bank decides to hold policy rate steady at 22%

BusinessState Bank decides to hold policy rate steady at 22%

KARACHI, Pakistan: The State Bank of Pakistan’s Monetary Policy Committee (MPC) on Monday decided to hold the policy rate steady at 22 percent.

In approaching today’s decision, the Committee noted that in line with earlier expectations, inflation has begun to decline noticeably from the second half of Fiscal Year 2023-24.


The Committee, however, observed that despite the sharp deceleration in February, the level of inflation remains high and its outlook is susceptible to risks amidst elevated inflation expectations. This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5 – 7 percent by September 2025.

The Committee reiterated that this assessment is also contingent upon continued targeted fiscal consolidation and timely realization of planned external inflows.

The MPC noted a few key developments since its last meeting which have implications for the macroeconomic outlook.

First, the latest data continues to depict moderate pick-up in economic activity, led by rebound in agriculture output.

Second, the external current account balance is turning out better than anticipated and has helped maintain FX buffers despite weak financial inflows.

Third, while inflation expectations of businesses have shown a steady increase since December, those for consumers have also inched up in March.

Lastly, on the global front while the broader trend in commodity prices remained benign, oil prices have increased; partly reflecting the continued tense situation in the Red Sea.

Moreover, amidst uncertainty regarding the inflation outlook, key central banks in both advanced and emerging economies have continued to maintain a cautious monetary policy stance in recent meetings.

Mati-Ullah is the Online Editor For DND. He is the real man to handle the team around the Country and get news from them and provide to you instantly.

Must read

Recent News

campaign against the Pakistan Army

Another campaign against the Pakistan Army is launched but this time from the other...

Islamabad, Pakistan: A new narrative is being shared in social media and even otherwise that the budget for grant 2024-25 of the Federal government...
Retinol benefits for skin

Retinol Benefits for Skin Whitening, Wrinkles, Acne, and Ageing

One of the effective skincare products to combat most of the skin conditions is retinol. Retinol is a healthy ingredient that works effectively against...

SIFC: FDI inflows hit $2 billion in July-March, Senate told

ISLAMABAD, Pakistan: The Country recorded the Foreign Direct Investment (FDI) inflow of approximately US$ 2 billion in the first nine months of the Fiscal...

Will petrol price be further dropped in Pakistan?

The federal government is set to announce the prices of petroleum products tonight for the next fortnight from June 16-30, 2024.By June 14, media...

Interbank Dollar Rate Today in Pakistan – 14 June 2024

Interbank Exchange Rates in Pakistan The Interbank Closing Exchange Rate in Pakistan has been issued by the State Bank of Pakistan (SBP) for June 14,...