Pakistan Central Bank Sees Moderation in Inflation, Growth

The video discusses the recent Harmonic Policy Committee meeting in Karachi, focusing on key points such as interest rates, inflation projections, and economic growth. It highlights the importance of fiscal and monetary policy coordination in Pakistan, especially in managing inflation expectations and growth outlook. The discussion also covers the IMF loan status, State Bank autonomy, currency valuation, and potential risks to GDP projections, including oil prices and global interest rates.

What was the main reason for the monetary policy committee's decision to pause interest rate hikes?

• The forward guidance provided in the previous meeting

• A change in government policy

• A significant increase in inflation

• A decrease in economic growth

How did Pakistan's fiscal policy contribute to its economic response during COVID-19?

• By increasing the debt-to-GDP ratio

• By expanding the tax base

• By implementing a tight fiscal policy

• By reducing interest rates significantly

What is the expected impact of the broadening of the tax base on inflation?

• It will cause a permanent increase in inflation

• It will have no effect on inflation

• It will lead to a temporary increase in some commodity prices

• It will decrease inflation immediately

What is one of the key risks to Pakistan's GDP growth mentioned in the transcript?

• A decrease in foreign direct investment

• An increase in local currency value

• A rise in domestic production

• A decline in global oil prices

What is the purpose of the proposed amendments to the State Bank Act?

• To eliminate the Central Bank's accountability

• To increase government control over the Central Bank

• To align the legislation with international best practices

• To reduce the operational autonomy of the Central Bank

How has the Pakistan rupee performed compared to the emerging market currency index since June 2019?

• It has depreciated more than the index

• It has appreciated against the index

• It has significantly outperformed the index

• It is broadly in line with the index

What external factor is considered a risk to Pakistan's economy?

• A rise in domestic inflation

• A decline in international trade

• A geopolitical situation in Europe

• A decrease in global interest rates