In fact, I also believe that a large part of the persistence of inflation in Pakistan’s economy is due to the sustained period of high inflation, which has allowed inflationary expectations to incubate. The transition from understanding these channels to developing the proper mechanisms to impact our objectives may not be smooth.
However, even taking these special factors into account, the underlying rate of monetary expansion remains strong. Moreover, the sustained expansion of loans to the domestic private sector, which grew at an annual rate of 11.2% in October, points to the  2  BIS Review 145/2007  continued vigour of underlying monetary dynamics.