The State Bank of Pakistan (SBP) has announced in the bi-monthly monetary policy committee meeting it has remained unchanged the policy rates at 7%.
The Central Bank’s monetary policy committee roll out its interest rates for the 2 months wherein it decided to remain it unchanged.
As per the monetary policy committee said in its statement that since the last meeting in November, the domestic recovery has gained some further traction, adding that “Most economic activity data and indicators of consumer and business sentiment have shown continued improvement.”
The monetary policy committee meeting concluded that while utility tariff hikes may cause an uptick in inflation, this is likely to be transient given excess capacity in the economy and well-anchored inflation expectations.
According to the MPC said in a statement that as a result, inflation is still expected to fall within the previously announced range of 7-9% for FY-2021 and trend toward the 5-7% target range over the medium-term.
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