SBP says inflation forecast reflects Bank’s projections
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The State Bank of Pakistan (SBP) on Monday said that in some sections of the media, SBP’s average inflation forecast of 7-9% in FY22 is being interpreted as the “inflation target” and being compared to the inflation targets of other countries, reported 24NewsHD TV channel.
1/2 In some sections of the media, SBP’s average inflation forecast of 7-9% in FY22 is being interpreted as the “inflation target” and being compared to the inflation targets of other countries. This is incorrect.https://t.co/g1RjZLnP9A
— SBP (@StateBank_Pak) November 22, 2021
“This is incorrect,” the SBP statement reads.
The State Bank in a statement said: “SBP’s inflation forecast represents our projections for the current fiscal year. On the other hand, Pakistan’s inflation target is set by the government and is 5–7 %. This target is to be achieved over the medium term.”
“Monetary policy is anchored on achieving the government’s inflation target over the medium term, i.e. over the next 18-24 months,” the statement added.