Karachi (Staff Report): The State Bank of Pakistan (SBP) on Monday announced Monetary Policy, keeping policy rate unchanged at 15 percent.
“With recent inflation developments in line with expectations, domestic demand beginning to moderate and the external position showing some improvement due to a lower trade deficit and resumption of the IMF (International Monetary Fund) programme, the Monetary Policy Committee (MPC) felt that it was prudent to take a pause at this stage,” read a statement issued by the SBP.
The statement further said this pause allowed the MPC to assess the impact of tightening by 800 basis points since September and the fiscal consolidation planned for financial year 2023.
The central bank added that the move was also in line with recent actions by other central banks, who it said have been “holding rates in recent meetings as global growth and commodity prices have slowed”.
“To contain external pressures and support the rupee going forward, it is important to contain the current account deficit by delivering the budgeted fiscal consolidation, lowering energy imports through energy conservation measures, and keeping the IMF programme on track,” the SBP explained.
