THE State Bank’s decision to keep its key policy rate unchanged at 11pc for the fourth monetary policy review since May aims at maintaining price stability amid resurging inflation. Headline CPI inflation rose to 5.6pc last month from 3pc in August, while core inflation remained unchanged at 7.3pc, suggesting that underlying pressures remain firm. The decision also shows that risks to the fragile recovery, particularly improvements in the external sector, continue despite some strengthening of the fundamentals. This is most evident in the external sector’s stability being sustained by strong remittance inflows and import restrictions amid stagnant exports and limited foreign private and official inflows. The remarkable growth in........

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