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KARACHI: Evolving geopolitical developments in the Middle East could push up global energy and other commodity prices beyond assumed levels, thereby affecting the macroeconomic outlook, warned the State Bank’s biannual Monetary Policy Report (MRR), issued on Monday.
Aligning with the State Bank’s commitment to transparency in monetary policy decisions and the MPC’s reaction function, the SBP issued its biannual MPR. The report analyses macroeconomic developments and the outlook that influenced monetary policy since the January MPC meeting.
The report highlighted climate-related risks, specifically the evolving El Nino conditions and floods, which could adversely affect the economy. Moreover, delays in implementation of structural reforms could further weaken exports, slow productivity gains, and reduce the economy’s capacity to sustain higher growth without generating inflationary and external account pressures, it added.
Mideast conflict may lift energy, commodity prices
