Mohsin Siddiqui (Chief Reporter)

The Monetary Policy Committee (MPC) has decided to maintain the policy rate at 22%, signaling a commitment to addressing ongoing inflationary pressures in the economy.

Despite a notable decrease in February, inflation levels remain elevated, posing challenges to economic stability. The committee acknowledges the susceptibility of the inflation outlook to various risks, particularly amidst heightened inflation expectations.

In light of these circumstances, the MPC adopts a cautious approach, emphasizing the importance of continuity in the current monetary stance. The aim is to gradually bring inflation down to the target range of 5 – 7 percent by September 2025, ensuring sustainable economic growth and stability.

The decision to hold the policy rate steady reflects the MPC’s assessment of the prevailing economic conditions and the need for a calibrated response to inflationary trends. By maintaining a consistent monetary policy framework, the committee aims to mitigate inflationary pressures and support long-term economic objectives.

The MPC’s deliberations underscore the significance of proactive measures in managing inflation while fostering an environment conducive to investment and growth. Continued vigilance and adherence to prudent monetary policies are essential in navigating the challenges posed by inflation and promoting economic resilience.