State Bank of Pakistan to announce Monetary Policy today

KARACHI: Pakistan’s central bank will announce its monetary policy on Monday (today) for the next two months.

The State Bank of Pakistan (SBP) in a press statement stated that its Monetary Policy Committee (MPC) will meet today, to decide on the Monetary Policy.

The MPC will review the overall economic and financial situation, major indicators, data of different sectors, and major developments taken place since the announcement of the previous monetary policy.

Previously on September 12, the SBP made a major cut in the interest rate by reducing 200 basis points in the interest rate. The central bank slashed the rate by two percent to 17.5% in the policy.

The stakeholders expecting a significant cut in the interest rate today.

The capital market anticipating reduction of 200 basis points, which would bring the rate to 15.5%, following a second consecutive month of single-digit inflation, with October’s reading at 7.2%.

The business bodies demanding of the SBP to reduce its key policy rate by 400-500 basis points, bringing it down to 12.5-13.5% from the current 17.5 percent.