SBP’s inflation forecast being interpreted as target

SBP rubbishes rumours of limiting ATM cash withdrawal to Rs1,000
Observer Report

The State Bank of Pakistan (SBP) Monday clarified that the central bank had forecast of 7-9% inflation in FY22 which was being wrongly interpreted as the bank’s inflation target by some sections of media.

In some sections of the media, SBP’s average inflation forecast of 7-9% in FY22 is being interpreted as the “inflation target” and being compared to the inflation targets of other countries. This is incorrect, said a bank’s news release. SBP’s inflation forecast represents the projections for the current fiscal year.

On the other hand, Pakistan’s inflation target is set by the government and is 5– 7 %. This target is to be achieved over the medium term. Monetary policy is anchored on achieving the government’s inflation target over the medium term, i.e. over the next 18-24 months.

Previous articleJS Bank launches digital account opening facility titled ‘JS Blink’
Next articleAzerbaijan companies intend to invest $1b in Pakistan: Khazar