Monetary policy continued, interest rate maintained at 22 percent level

Karachi: The State Bank has issued a monetary policy in which the interest rate has been maintained at the level of twenty-two percent.

According to Express News, the Monetary Policy Committee of the State Bank has announced to maintain the current interest rate at 22 percent. Today, the State Bank has said in its monetary policy statement that the economic stabilization measures are contributing to a substantial improvement in both inflation and external position and moderate economic recovery is coming, however the level of inflation is still high.

Fluctuations in global oil prices, revolving energy debt and measures to be taken in the upcoming budget pose risks to the inflation outlook, with global commodity prices at their lowest levels with resilient global growth, the policy statement said. have arrived Recent international events have also added to the uncertainty about their outlook, moreover, the near-term outlook for inflation may have implications for upcoming budget measures.

Overall, the committee called for continuation of the current monetary policy stance to bring down inflation within the target range of 5-7 percent by September 2025. According to the expectations of the Monetary Policy Committee, inflation continued to moderate significantly during the second half of FY24.

Headline inflation eased to 20.7 percent year-on-year in March from 23.1 percent in February. Inflation in the same period declined significantly to 15.7 percent from 18.1 percent in February, due to the coordinated monetary tightening and fiscal policy response, among other factors, which contributed to this favorable outcome, including a decline in global commodity prices. Improved nutrition and high basic effectiveness.