Consistent with the market expectations, the State Financial institution of Pakistan (SBP) Monday determined to carry the important thing coverage charge at 22%.
In an announcement, the central financial institution mentioned: “At its assembly at present, the Financial Coverage Committee (MPC) determined to keep up the coverage charge at 22 %.”
The committee famous that headline inflation rose in September 2023 as anticipated — a significant component in figuring out the important thing coverage charge.
Nevertheless, the SBP mentioned, it’s projected to say no in October after which preserve a downward trajectory, particularly within the second half of the fiscal yr.
The central financial institution acknowledged that the current volatility in world oil costs in addition to the rise in fuel tariffs from November pose some dangers to the FY24 outlook for inflation and the present account.
“The committee additionally famous some offsetting components: These embrace the focused fiscal consolidation in Q1; enchancment in market availability of key commodities; and the alignment of interbank and open market change charges.”
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