ISLAMABAD: The State Bank of Pakistan (SBP) has announced the monetary policy while keeping the policy rate unchanged at 22 percent. The announcement was made by SBP Governor Jameel Ahmed in a press conference in Karachi on Monday Afternoon.
1/4 The Monetary Policy Committee (MPC) decided to maintain the policy rate at 22 percent in its meeting today.https://t.co/Jo3dUKwmcQ#SBPMonetaryPolicy pic.twitter.com/zBcFAS4Xoa
— SBP (@StateBank_Pak) July 31, 2023
The governor announced the Monetary Policy after a meeting of the bank’s Monetary Policy Committee (MPC) the same day, adding that during the last 6 months, the inflation remained at 29.2 percent. He further said that in the coming months, the inflation is expected to be in the range of 20 to 22 percent. “From July to December, the inflation rate would gradually go down but we would see a steady decline after January to June 2024.” Jameel Ahmad Pointed out.
Ban Lifted On Imports
Regarding foreign reserves and imports, the governor said that from June 2023 onward, the government has lifted the ban on all king of imports, resulting in pressure on foreign reserves which settled at $8.2bn. He, however, added that foreign reserves would be increased again till December 2023.
About the policy rate, the governor said the decision to keep the policy rate unchanged was taken after reviewing inflation. “There was a significant decline in year-on-year inflation in June,” he added.
The governor also apprised that the committee assessed that the central bank was on track to bring inflation to 5-7pc by the end of 2025.
The governor added that the economic growth was also highlighted in the committee’s meeting and growth was expected to stay between 2pc and 3pc in the next year.
