Karachi: State Bank of Pakistan Governor Jamil Ahmed has said that the tight monetary policy has not only helped in keeping inflation under control but its positive effects are expected to continue in the coming months. According to him, the coordination of fiscal and economic policies is giving encouraging results for the stability of the country’s economy.
He said that a decision on any possible reduction in interest rates will be taken only after the flood damages and the upcoming IMF review. According to the governor, the central bank is carefully reviewing the situation so that decisions are taken that are better for the country’s economy.
Jamil Ahmed said that in the short term, the inflation rate is likely to be slightly higher than the central bank’s target, i.e. 5 to 7 percent. However, according to him, overall inflation is expected to return to the central bank’s target range in the medium term.
He added that the tight fiscal policy adopted in recent years played a central role in controlling inflation, and the same strategy will continue to help stabilize the country’s economy in the future.
