Inflation hits 11.1%, policy stays at 11.5%
The State Bank of Pakistan (SBP) kept its policy rate unchanged at 11.5% on Monday, with seven of the 10 members of the Monetary Policy Committee (MPC) voting for the status quo, as intensifying geopolitical tensions pushed up global commodity prices and raised risks to the inflation outlook. Ironically, SBP also claimed that the economy's pace was right and domestic macroeconomic indicators remained broadly in line with its expectations despite a sharp increase in headline inflation, which rose to 11.1% in August from 9.2% in July. The central bank said core inflation was slightly lower than expected, while pressures on the external account remained contained because of robust workers' remittances and higher financial inflows.