The State Bank of Pakistan (SBP) maintained the policy rate at 22% for the seventh consecutive meeting. Despite considerable disinflation in February, the SBP chose to remain cautious.
There remain risks to future inflation – from further increases in administrated prices (of energy) and tax measures in the FY25 budget could be inflationary. The decision was in line with market consensus.
The outlook for GDP growth – in the range of 2-3% in FY24 – remains intact........