Two views seem to have clearly emerged about the conduct of monetary policy in the country. There are several analysts who think that there is now enough evidence to suggest that the monetary policy stance of the State Bank needs to be eased.
With import growth contained and a steady downward trend achieved in (non-food, non-energy) core inflation, the SBP is in a position to reverse its tight policy and ease interest rates as early as the first quarter of 2007.
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