Director External Relations SBP, Syed Wasimuddin, confirmed to The Express Tribune that the central bank would provide its analysis of economic developments and announce a policy stance at the end of the month.
In the monetary policy unveiled on May 24, the central bank had highlighted that “all inflation indicators, whether it is Consumer Price Index (CPI), Wholesale Price Index (WPI), Sensitive Price Index (SPI) or Non-food Non-energy (NFNE) and trimmed measures of core inflation, have shown an upward movement in recent months.”
The document stated that “monetary policy being a stabilisation tool has to remain focused on its ultimate target of monetary and financial stability.”
Growing fears of inflation have driven some economists to call for an increase in the discount rate. However, others have opined that persistent inflation has been caused by fiscal and administrative flaws, particularly in fuel and food items. Industrialists and other stakeholders have called for the SBP to maintain the discount rate at the current level of 12.5 per cent.
Published in The Express Tribune, July 21st, 2010.
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