F.P. Report
ISLAMABAD: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has decided to maintain the policy rate at 22% for the next two months, in its meeting held on Monday.
The committee meeting, chaired by the SBP governor, noted that despite the sharp decline in February, inflation remained at an elevated level, adding that the inflation outlook is also susceptible to risks amidst elevated inflation expectations.
The MPC further assessed that these circumstances warranted a cautious approach and continuity of the current monetary stance to bring inflation down to the target range of 5-7% by September 2025.
The IMF had demanded not to reduce the interest rate and the business community had also demanded to reduce it. The State Bank will also brief economists on the new monetary policy today.
