KARACHI (January 16 2007): Pakistan's central bank will unveil its monetary policy for the second half of the fiscal year on January 18, a bank spokesman said on Monday. "The State Bank of Pakistan's board of directors will meet in Karachi on January 18, and will release a policy statement on the same day," chief spokesman Syed Wasimuddin said.

Pakistan's financial year ends on June 30. The central bank has adopted a tight monetary policy in recent years to counter inflation.

In July, it raised its key discount rate to 9.5 percent from 9.0 percent, further reinforcing its aggressive stance to counter inflation.

In a quarterly report last month, the central bank said inflation might exceed a 6.5 percent target for the 2006/07 fiscal year, as food prices are yet to show a steady downward trend.

The consumer price index rose 8.88 percent in December from a year earlier, with food prices once again a major contributor to the increase.

Copyright Reuters, 2007