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Policy rate: a cut is likely?

Despite a decline in inflation, overall costs are still growing this year in comparison to prior years. Regarding inflation, let me remind everyone that core inflation is not the benchmark…

Policy rate and inflation

In the 1970s, economists believed that inflation was primarily caused by ‘monetarism’, which is too much money chasing too few goods. They contended that the only way to control inflation…

Policy rate and oil subsidy — I

In its latest Monetary Policy Statement (MPS), released a few days ago, State Bank of Pakistan (SBP) raised policy rate by 150 basis points to 13.75 percent. As per his…

Policy rate and oil subsidy — II

Therefore, such policy increase will likely do a lot of harm to the impact of bottom-up approach by the previous government has adopted since the start of the pandemic. It…

Policy rate cut

The Monetary Policy Committee (MPC) met for the third time in less than one month on 16 April 2020 and reduced the rate to 9 percent - from 13.25 percent…

Policy rate: ‘boldest’ hike in Asia

Dr Reza Baqir, Governor State Bank of Pakistan (SBP), during his interview to Bloomberg on 17 December stated that the apex bank would “pause” interest rate hikes to preserve economic…

Policy rate primer

LET’S say, I am a fruit vendor, and the only one in the village. There is only one kilogramme of apples left in my shop. I am about to go…

Setting the policy rate

The Monetary Policy Committee (MPC) of the SBP met recently to set the policy rate for the next two months. The Monetary Policy Statement (MPS) released after the meeting is…

CPI And The Policy Rate

CPI and the policy rate

The base of an index plays a critical role in its measurement. The longer a base is retained, the more distant it becomes from the start. This is all the…