Karachi April 29 2024: State Bank of Pakistan inject liquidity of PKR 9,321 billion in market through Reverse Repo Purchase on Friday April 26, 2024, one day before the announcement of decision regarding policy rate.
SBP accepted offers of PKR 9,300 billon for 7 days and PKR 21 billion for 28 days at a rate of 22.05 and 22.04, respectively.
The State Bank of Pakistan (SBP) will announce Monetary Policy on April 29 in a meeting of the Monetary Policy Committee (MPC).
During the previous meeting, the Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 22 percent. In approaching today’s decision, the Committee noted that inflation, in line with earlier expectations, has begun to decline noticeably from H2-FY24.
The Committee, however, observed that despite the sharp deceleration in February, the level of inflation remains high and its outlook is susceptible to risks amidst elevated inflation expectations. This warrants a cautious approach and requires continuity of the current monetary stance to bring inflation down to the target range of 5 – 7 percent by September 2025. The Committee reiterated that this assessment is also contingent upon continued targeted fiscal consolidation and timely realization of planned external inflows.
