
𝗛𝗼𝗹𝗱 𝘁𝗵𝗲 𝗣𝗼𝗹𝗶𝗰𝘆 𝗥𝗮𝘁𝗲 𝗮𝘁 𝟭𝟬.𝟱 𝗣𝗲𝗿𝗰𝗲𝗻𝘁 𝗼𝗻 𝟮𝟳 𝗔𝗽𝗿𝗶𝗹 𝟮𝟬𝟮𝟲: 𝗪𝗵𝘆 𝗪𝗮𝗿-𝗗𝗿𝗶𝘃𝗲𝗻 𝗦𝘂𝗽𝗽𝗹𝘆 𝗥𝗶𝘀𝗸𝘀 𝗡𝗼𝘄 𝗢𝘂𝘁𝘄𝗲𝗶𝗴𝗵 𝘁𝗵𝗲 𝗖𝗮𝘀𝗲 𝗳𝗼𝗿 𝗙𝘂𝗿𝘁𝗵𝗲𝗿 𝗘𝗮𝘀𝗶𝗻𝗴 In uncertain times, policy credibility matters more than haste. PIDE's latest policy viewpoint recommends maintaining the policy rate at 10.5% ahead of the April MPC meeting. 𝗪𝗵𝘆 𝗵𝗼𝗹𝗱 𝘁𝗵𝗲 𝗿𝗮𝘁𝗲? • Increasing rates now would be premature while the recovery remains moderate • Inflation has re-accelerated and core inflation remains sticky • Growth has improved, reducing the urgency for further easing • External buffers have strengthened but remain thin • War-driven oil, freight, and exchange-rate risks have raised uncertainty 𝗞𝗲𝘆 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 • Cutting rates now could weaken inflation credibility and amplify imported inflation risks • A cautious, mildly hawkish pause allows time to assess the persistence of external shocks • Holding the rate best balances inflation control, growth recovery, and external stability 𝗧𝗵𝗶𝘀 𝗶𝘀 𝗮 𝗺𝗼𝗺𝗲𝗻𝘁 𝗳𝗼𝗿 𝗰𝗮𝘂𝘁𝗶𝗼𝗻, 𝗻𝗼𝘁 𝗲𝗮𝘀𝗶𝗻𝗴 𝗼𝗿 𝘁𝗶𝗴𝗵𝘁𝗲𝗻𝗶𝗻𝗴. Read More: pide.org.pk/research/hold-… @nadeemjavaid75, @betterpakistan, @GovtofPakistan, @PlanComPakistan, @Financegovpk, @StateBank_Pak #PIDE #Research #PolicyRate #Inflation #Pakistan














