Expert’s comments on MPC decision to maintain status quo on interests’ rate

The SBP’s MPC maintained the status quo in its meeting on March 08th in line with market consensus. The committee opted to keep the benchmark policy rate unchanged at 9.75% and stated that high-frequency indicators suggest that growth continues to moderate to a more sustainable pace.

This moderation should help keep at bay demand-side pressures on inflation and contain non-oil imports, notwithstanding the significant uncertainty about the future path of global energy and food prices due to the Russia-Ukraine conflict. The tone of the statement was vigilant. Inflation, external account, and economic growth remained the key factors that suggest the direction of monetary policy going forward.

Courtesy- Spectrum Research’

 

 

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