Remittances, exports will stabilise economy: SBP chief

State Bank Governor Jameel Ahmed expressed hopes on Thursday that an uptick in remittances and dip in inflation would lend stability to the economy this year. The governor was addressing the representatives of trade and industry at the FPCCI building. He said inflation would further decline this month, but it might fluctuate over the next five months and could settle between five and seven per cent. The governor said interest rate had been slashed by 900 basis points to 13 per cent since June last year. He was silent on the likelihood or otherwise of a rate cut if inflation fell further. The January inflation is expected to be around three per cent — down from 4.1 per cent last month. The consistent fall in inflation compelled the State Bank to reduce the interest rate and minimise the gap between the real interest and policy rates.