November 22, 2021 (MLN): The State Bank of Pakistan (SBP) has negated some sections of the media wherein 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, a clarification note issued by the central bank said on Monday.

SBP’s inflation forecast represents projections for the current fiscal year, FY2021-22, it said.

On the other hand, Pakistan’s inflation target is set by the government which 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 notice further added.

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