This is a good moment to review the conduct of monetary policy during the pandemic, with a primary focus on the PEPP. In addition to this review, I will also discuss the current challenges for monetary policy.
However, a factor to consider here is the high administrative expense to total expense ratio because of rising remuneration of banking professionals and high operating costs. SBP is keen to evolve a more stable and positive real interest environment over longer run and as a starting point has incentivized banks, through a combination of measures, to change the maturity mismatches on their balance sheets.