ISLAMABAD, April 29 (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 the macroeconomic stabilization measures are contributing to considerable improvement in both inflation and external position, amidst moderate economic recovery, the SBP said in a statement.
However, the committee also noted that this inflation outlook is susceptible to risks emanating from the recent global oil price volatility along with the bottoming out of other commodity prices, the potential inflationary impact of the resolution of circular debt in the energy sector, the bank said.
"Cognizant of these risks, the committee assessed that it is prudent to continue with the current monetary policy stance at this stage, with significant positive real interest," said the statement.
The committee said that the continuation of the current monetary policy stance will help bring inflation down to the target range of 5-7 percent by September 2025. ■
