Monetary Policy Committee (MPC) of the State Bank of Pakistan in its meeting of 18 Mar 2024, decided to hold the line on interest rates.
Here's a breakdown of their decision:
Interest Rate Unchanged: The MPC kept the policy rate at 22%.
Reasoning:
Inflation is starting to go down as expected.
However, inflation is still high and could rise again due to people expecting high prices.
Goal: Bring inflation down to 5-7% by September 2025.
Conditions: This depends on the government controlling spending and getting expected money from outside Pakistan.
Overall, the MPC is being cautious by keeping interest rates high to fight inflation. They're hoping this, along with government actions, will bring prices under control.
