ISLAMABAD: The State Bank of Pakistan (SBP) has chosen to uphold the status quo by maintaining the key policy rate at 22% for the seventh consecutive time, as announced on Monday.
During today’s meeting, the Monetary Policy Committee (MPC) acknowledged the significant role of macroeconomic stabilization measures in improving both inflation and the external position amid a moderate economic recovery.
“However, the MPC expressed concerns about the persistent high level of inflation. Meanwhile, global commodity prices seem to have stabilized amidst strong global economic growth,” as per a statement released after the meeting.
The MPC also highlighted that recent geopolitical events have introduced additional uncertainty into the economic outlook. Furthermore, upcoming budgetary measures could have implications for the near-term inflation forecast.
In summary, the committee emphasized the importance of maintaining the current monetary policy stance to steer inflation towards the target range of 5 to 7% by September 2025.
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