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’