- Reuters
- 10 Hours ago

SBP announces to keep policy rate unchanged at 22% amid rising inflation
-
- Web Desk
- Oct 30, 2023

WEB DESK: The State Bank of Pakistan (SBP) has opted to maintain the key policy rate at 22 per cent, according to a press release issued on Monday.
1/3 Monetary Policy Committee (MPC) of #SBP has decided to maintain policy rate at 22% in its meeting held today. See https://t.co/P8SJRWWQhc#SBPMonetaryPolicy pic.twitter.com/t1ixjs3W5Z
— SBP (@StateBank_Pak) October 30, 2023
The decision, consistent with the expectations of numerous analysts, was made by the central bank’s Monetary Policy Committee (MPC) in light of the staggering 31.4 per cent consumer inflation recorded in September.
This announcement comes in the wake of the government’s revelation of an alarming spike in consumer inflation, underscoring the economic challenges facing the nation.
The MPC, in its statement issued after the meeting, acknowledged the anticipated rise in headline inflation for September 2023.
However, the committee expressed optimism, projecting a decline in October and anticipating a sustained downward trajectory, particularly in the latter half of the fiscal year.
The decision is set against the backdrop of the upcoming review by the International Monetary Fund (IMF) for the release of the second tranche of the $710 million fund.
Pakistan’s economic stability and fiscal policies are under close scrutiny as global economic dynamics continue to fluctuate.
Read more: Sixth consecutive decline: Pakistani rupee closes 38 paisa lower against US dollar
While the recent volatility in global oil prices and the impending increase in gas tariffs from November 2023 pose inherent risks to the inflation outlook and the country’s current account, the MPC highlighted several mitigating factors.
These include the targeted fiscal consolidation in the first quarter, marked improvements in the market availability of key commodities, and the alignment of interbank and open market exchange rates.
The SBP’s decision reflects a balance between addressing inflationary pressures and fostering economic stability.
