Islamabad: Key points from the State Bank’s briefing to financial experts have been revealed.
State Bank officials informed financial experts that although there is persistent inflationary pressure, its intensity is decreasing.
They noted that the impact of budgetary measures on inflation is in line with expectations.
Officials stated that increasing rates to boost income could worsen the inflationary scenario in the short term.
Due to demand pressures, economic growth is expected to remain moderate, while the external account continues to improve.
Despite high payments, foreign exchange reserves have increased, and efforts to maintain financial stability are on track.
The monetary policy trend is aligned with expectations and a stringent policy stance.
It is worth noting that the State Bank recently announced a 1% reduction in the interest rate, bringing it down to 19.5%.
Additionally, Fitch has improved Pakistan’s long-term foreign currency rating after nearly seven months, while the Pakistani rupee has depreciated, making the dollar more expensive.