Macroeconomic Forecast Pakistan

October 2006 | Macroeconomic Forecasts

Official View: The State Bank Of Pakistan expects the economy to grow by close to 7% in 2006/07, but has also cited inflation as a key concern. The Bank would like inflation to be brought down to 6.5% in this fiscal year, but with it running at 8.93% in August, this may require further monetary tightening. Indeed, the central bank governor, Shamshad Akhtar, has warned that if inflation does not react to July's 50bps hike in the discount rate to 9.50%, then they will lift it

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