State Bank likely to cut interest rate by 2% in MPC meeting on Dec 16

A meeting of State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) will be held on December 16, 2024 in Karachi, reported 4NewsHD TV channel on Friday.

The participants of the meeting will take final decision regarding further cut in current interest rate.

According to a report, during the month of November 2024, inflation rate decreased at the lowest level of last 78 months which is currently at 8 percent.

Experts believe that due to decline in trade deficit and current account surplus economic difficulties will further decrease.

A market survey conducted in this regard showed that 63 percent out of 71 percent people expressed hope that interest rate will cut by 2 percent while 30 percent people expecting 2.5 percent cut in interest rate.

The report stated that 7 percent decrease registered in inflation rate from the month of June 2024, while during the month of November inflation rate touched to its lowest level of 4.90 percent from last 78 months.

The survey report stated that during fiscal year 2025 inflation rate likely to remain between 7 to 8 percent.

In fiscal year 2024 interest rate was cut by 2.5 percent to touch 15 percent.

Reporter: Ashraf Khan