Inflation to start going down in November

The State Bank of Pakistan (SBP) has forecasted a decline in the inflation rate starting in November, despite witnessing improvements in the USD exchange market, as reported by ARY News on Thursday.

In a statement, the central bank highlighted improvements in the agriculture sector and an increase in cotton imports. It also noted that the USD exchange market showed signs of improvement due to stringent measures taken by the administration.

The central bank alluded to the implementation of rigorous measures aimed at stabilizing commodity prices nationwide. Its objective is to reduce the inflation rate to a range of 5 to 7% by the year 2025.

The SBP anticipates a high inflation rate for October, with expectations of a decrease in November.

Regarding the new monetary policy, the State Bank of Pakistan (SBP) announced its decision to maintain the key policy rate at 22%, as stated in a press release issued on the same day.

This decision followed a meeting of the bank’s Monetary Policy Committee (MPC).

The MPC observed that despite recent increases in global oil prices, inflation is still expected to decrease, particularly in the latter half of the current year.

Furthermore, the MPC assessed that a stringent monetary policy stance, an improved outlook for the agriculture sector, and recent administrative and regulatory reforms will contribute to achieving the medium-term inflation target.

The committee emphasized the importance of maintaining a responsible fiscal approach to manage overall demand effectively.

The MPC also made it clear that it would closely monitor any risks to the inflation outlook and would take appropriate actions if necessary to ensure price stability.

Simultaneously, the committee stressed the significance of maintaining a prudent fiscal stance to control aggregate demand effectively. This measure is crucial for sustaining a reduction in inflation and reaching the medium-term target of 5-7% by the end of the fiscal year 2025.

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