KARACHI – State Bank of Pakistan (SBP) on Monday maintained the key policy rate at 22 percent, it was announced after a meeting of Monetary Policy Committee (MPC).
March 18 meeting was the sixth consecutive huddle where State Bank opted to maintain the same rate.
In a statement, the bank said Monetary Policy Committee (MPC) has chosen to keep the policy rate unchanged at 22percent and anticipated that inflation, in line with earlier expectations, has begun to decline noticeably from H2-FY24.
MPC officials Committee said despite the significant slowdown in February, there was uptick in inflation, and ts outlook is susceptible to risks amidst elevated inflation expectations. This calls for a cautious approach, and maintaining the current monetary policy stance is deemed necessary to bring inflation down to the target range of 5–7% by September 2025.
In the key huddle, MPC central said assessment relies on continued targeted fiscal consolidation and timely realization of planned external inflows.
