The State Bank of Pakistan (SBP) has decided to keep the monetary policy rate unchanged at 22%, the central bank said in an official statement after the Monetary Policy Committee (MPC) earlier today (Monday). 

At its meeting, the Committee noted that inflation, in line with earlier expectations, has begun to decline noticeably from H2-FY24. 

It, 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% 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 SBP’s statement read.

More to follow…