State Bank’s MPC meeting to decide rate cut begins

The State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) is underway (today) under the chairmanship of SBP Governor Jameel Ahmad in Karachi to take a final decision about the interest rate, reported 24NewsHD TV channel on Monday.

During the Monetary Policy Committee meeting, the participants will review current economic indicators of the country and will take a final decision about the interest rate.

According to a recent survey, about 80 per cent of respondents expect the SBP to reduce interest rates, with 56 per cent predicting a 50 basis points cut and 15 per cent foreseeing a one percentage point reduction in the policy rate. 

The survey highlights widespread optimism for easing monetary conditions. The policy announcement will set the interest rate for the next two months.

At present, the key interest rate stands at 10.5 percent. In the previous meeting, the committee had reduced the rate by 50 basis points.

The business community and investors have been urging the central bank to lower the rate in order to further stimulate economic activities and promote business growth across the country. 

State Bank of Pakistan Governor Jameel Ahmad will brief the media about the decisions of the Monetary Policy Committee at 4 pm.

Reporter: Ashraf Khan