Inflation to start going down in November: SBP

The State Bank of Pakistan (SBP) predicted that the inflation rate would start to go down in November despite the improvement in the USD exchange market, ARY News reported on Thursday.

The central bank said in a statement that agriculture sectors are improved and cotton imports have increased. It added that the USD exchange market was improved after strict action by the administration.

The central bank hinted at strict actions to stabilise the commodities’ prices across the country. It aimed to reduce the inflation rate to 5 or 7% by 2025.

The SBP predicted a high inflation rate in October which would go down in November.

New monetary policy

The State Bank of Pakistan (SBP) on Thursday decided to keep the key policy rate unchanged at 22 per cent, according to a press release issued today.

The announcement came after a meeting of the bank’s Monetary Policy Committee (MPC).

“[The] MPC noted that while global oil prices have risen recently, inflation is still projected to trend down, especially from the second half of this year,” it said.

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MPC also assessed that the tight monetary policy stance, improved agriculture outlook, and recent administrative and regulatory reforms will help achieve the medium-term inflation target.

The committee further stressed on maintaining a prudent fiscal stance to keep aggregate demand in check.

The MPC noted that it will continue to monitor the risks to the inflation outlook and, if required, it will take appropriate action to achieve the objective of price stability.

At the same time, the MPC also stressed maintaining a prudent fiscal stance to keep aggregate demand in check.

This is necessary to bring inflation down on a sustainable basis and to achieve the medium-term target of 5-7% by end-FY25.