State Bank of Pakistan (SBP) Governor Jamil Ahmed stated that the country’s tight monetary policy has been effective in controlling inflation and is expected to continue yielding positive results. He credits the stability of the economy to the coordinated efforts of fiscal and economic policies.
Regarding a potential reduction in interest rates, Ahmed said any decision would be contingent upon assessing flood damages and the outcome of the upcoming International Monetary Fund (IMF) review.
While acknowledging that the short-term inflation rate will likely exceed the SBP’s 5-7% target, the Governor remains confident that overall inflation will return to the target range in the medium term. He affirmed that the State Bank will continue the tight policy strategy to ensure economic stabilization.
