The Monetary Policy Committee (MPC) of the State Bank of Pakistan, in its meeting on March 10, 2025, decided to keep the policy rate unchanged at 12 percent. The decision was influenced by lower-than-expected inflation in February 2025, primarily due to a drop in food and energy prices. However, the MPC noted the persistent elevated level of core inflation and the potential for food and energy prices to rise again. Economic activity is showing signs of recovery, but there are pressures on the external account due to rising imports and weak financial inflows.
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