Karachi January 22 2022: The Monetary Policy Committee of SBP will meet on Monday, January 24, 2022 at SBP Karachi to decide about Monetary Policy.
Governor State Bank of Pakistan, Dr. Reza Baqir, will give a press conference on the same day after the MPC meeting.
In the Monetary Policy Committee (MPC) held on December 14 2021, the committee decided to raise the policy rate by 100 basis points to 9.75 percent. The goal of that decision was to counter inflationary pressures and ensure that growth remains sustainable.
The momentum in inflation has continued since the last MPC meeting, as reflected in a significant increase in both headline and core inflation in November. Due to recent higher than expected outturns, SBP expects inflation to average 9 – 11 percent this fiscal year.
Due to the higher recent outturns, the current account deficit is projected at around 4 percent of GDP, somewhat higher than earlier projected. While in the near term monthly current account and trade deficit figures are likely to remain high, they are expected to gradually moderate in the second half of FY22 as global prices normalize with the easing of supply disruptions and tightening of monetary policy by major central banks. In addition, recent policy actions to moderate domestic demand―including policy rate hikes and curbs on consumer finance―and proposed fiscal measures, should help moderate growth in import volumes through the rest of the year.