ISLAMABAD, March 18 (Xinhua) -- The monetary policy committee of the State Bank of Pakistan (SBP) has decided to keep the policy rate unchanged at 22 percent, the central bank said on Monday.
The committee noted that inflation, in line with earlier expectations, has begun to decline noticeably from the second half of the ongoing fiscal year starting from July 2023 to June 2024, the SBP said in a statement.
The central bank, however, said that despite the sharp deceleration in February, the level of inflation remains high and its outlook is susceptible to risks amidst elevated inflation expectations, said the statement.
This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5 percent to 7 percent by September 2025, it added.
"The committee reiterated that this assessment is also contingent upon continued targeted fiscal consolidation and timely realization of planned external inflows," according to the central bank. ■
