KARACHI: The State Bank of Pakistan (SBP) on Thursday decided to keep the key policy rate unchanged at 22 per cent, according to a press release issued on Thursday.
The announcement came after a meeting of the bank’s Monetary Policy Committee (MPC).
“[The] MPC noted that while global oil prices have risen recently, inflation is still projected to trend down, especially from the second half of this year,” it said.
MPC also assessed that the tight monetary policy stance, improved agriculture outlook, and recent administrative and regulatory reforms will help achieve the medium-term inflation target.
1/4 Monetary Policy Committee (MPC) decided to maintain the policy rate at 22 percent in its meeting today. https://t.co/Rns1WF4AsB#SBPMonetaryPolicy pic.twitter.com/HT9w9wWZAU
— SBP (@StateBank_Pak) September 14, 2023
The committee further stressed on maintaining a prudent fiscal stance to keep aggregate demand in check.
The MPC noted that it will continue to monitor the risks to the inflation outlook and, if required, it will take appropriate action to achieve the objective of price stability.
At the same time, the MPC also stressed maintaining a prudent fiscal stance to keep aggregate demand in check.
This is necessary to bring inflation down on a sustainable basis and to achieve the medium-term target of 5-7% by end-FY25.
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