The State Bank of Pakistan (SBP) is set to announce its latest monetary policy today, which will guide financial decisions for the next two months.
According to a press release, the SBP’s Monetary Policy Committee (MPC) will convene to evaluate the current economic and financial landscape, taking into account recent developments and key indicators since the last policy review.
In its previous announcement on September 12, the SBP reduced its policy rate by 200 basis points, lowering it from 19.5% to 17.5%. There are strong expectations for another rate cut, with stakeholders in the capital market anticipating a further reduction of 200 basis points to 15.5%, especially as inflation has eased for the second consecutive month, recording 7.2% in October.
At the same time, business groups are pushing for a more substantial rate cut of 400 to 500 basis points, which would lower the interest rate to between 12.5% and 13.5% from the current 17.5%.
