The State Bank of Pakistan (SBP) will announce its second monetary policy for the current year today (Monday). The central bank’s Monetary Policy Committee (MPC) will hold a meeting to decide on the policy.
During the meeting, the MPC will review the overall financial and economic situation, key economic indicators, sector-wise data, and major developments since the last monetary policy. The central bank will officially announce its decision through a monetary policy statement.
Experts suggest the SBP may cut the interest rate by up to 1%. Currently, the interest rate in the country stands at 12%, while inflation has reached its lowest level.
In its previous meeting on January 27, 2025, the MPC took a careful approach and cut the interest rate by 100 basis points to 12%. This move was based on falling inflation and better economic indicators.
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MPC noted improvements in the current account balance, inflation, foreign capital inflows, fiscal management, and foreign exchange reserves. However, it also warned about the need to stay cautious due to possible inflation risks and global economic uncertainties.
Looking at development trends and potential challenges, the MPC stressed the importance of keeping a careful stance in monetary policy. This is to ensure price stability, which is key for long-term economic growth.
