The State Bank of Pakistan (SBP) maintained the policy rate at 7%, as ‘there are upside risks to current growth projection although inflation expectations remain well-anchored’.
The SBP said, “Since the last meeting in November the domestic recovery has gained some further traction… there are upside risks to the current growth projection of slightly above 2% in FY21, on the inflation front, recent out-turns are also encouraging, suggesting a waning of supply-side price pressures from food and still-benign core inflation.”
The SBP said that it expects inflation to fall within range of 7-9% for FY21.
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