State Bank of Pakistan has announced a new monetary policy for the next twomonths. Inflation, which was rising at the highest rate, is expected todecrease now. State Bank has stated that inflation will be high in Octoberbut will start decreasing from November.
Following administrative actions, there has been a reduction in inflationand an improvement in the dollar exchange market. According to details, theState Bank of Pakistan has decided to maintain the interest rate at 22% inthe new monetary policy for the next two months. They mentioned thatinflation was rising at a rate of 38% in May, but in August 2023, theinflation rate increased by 27.4%. Inflation has now fallen below thehighest level reached in May, and it is expected to continue to decrease,especially with actions against hoarding and speculative activities in thecommodity and exchange markets.
Adjustments in energy government prices are being made to transfer theimpact to consumers. Inflation is estimated to be decreasing, thanks torecent administrative measures that have reduced barriers to imports.Improvement has been observed in the dollar exchange market followingadministrative actions. Inflation will be high in October, but the rate ofinflation is expected to decrease from November.
