KARACHI : The State Bank of Pakistan (SBP) will announce Monetary Policy today.
The SBP is set to hold the Monetary Policy Committee (MPC) meeting today (Monday) to take a decision on interest rate.
The meeting, chaired by the SBP governor, will focus on reviewing the country’s key economic indicators. A decision regarding the new policy rate will also be announced following the discussions.
It is anticipated that the interest rate will be kept unchanged at 11 percent as experts suggest that existing economic conditions do not support a further reduction at this stage.
Since June 2024, the central bank has implemented a series of rate cuts aimed at stabilizing the economy and supporting growth.
Over the course of eight consecutive MPC meetings, the policy rate has been reduced by a total of 11 percentage points.
Meanwhile, the business community continues to urge the central bank to bring the interest rate into single digits, arguing that high borrowing costs are a barrier to investment and industrial expansion.
The bank had cut the rate by 1,000 basis points since June 2004 from an all-time high of 22 percent before holding it in March, citing the risk of price rises including from increased US tariffs.
In May, the central bank cut its key policy rate by 100 basis points to 11 percent, citing an improved inflation outlook and resuming a series of cuts from a record high of 22 percent.
“56 percent of market participants expect a status quo in the upcoming monetary policy meeting, compared to 31 percent in the previous poll,” Topline Securities said in a market note, releasing the results of its survey.
“44 percent of participants anticipate a further rate cut of at least 50 basis points. Of these, 19 percent expect a 50 bps cut and 25 percent foresee a 100 bps cut.”
