The State Bank of Pakistan (SBP) is scheduled to hold its Monetary Policy Committee (MPC) meeting on March 10, 2025 to review the monetary policy stance and is expected to cut rate by another 50bps, reported 24NewsHD TV channel on Monday.
In a poll conducted by Topline Securities, 38 percent of the market participants are of the view that rates will remain unchanged, while other 62 percent expect a rate cut of at least 50bps. However, analysts believed the State Bank’s Monetary Policy Committee (MPS) will observe status quo in upcoming meeting.
According to Topline, central bank has the further room of around 100bps cut as expected FY26 inflation to average between 8-9 percent, translating into real rate of 300-400bps with current policy rate of 12 percent. Historically Pakistan has maintained real rate of 200-300bps.
They said that there are multiple reasons of status quo as IMF review is scheduled for first week of March wherein new revenue targets and new budgetary taxation measures will get more attention and this may affect inflation outlook for FY26.