The State Bank of Pakistan has announced that its Monetary Policy Committee will meet on Thursday, September 12, 2024, to review economic data, reported 24NewsHD TV Channel on Monday.

According to a report by Topline Research, which conducted a market survey in preparation for the meeting, the majority of respondents expect a reduction in the interest rate by 150 basis points.

The survey indicated that 98% of participants foresee a cut in interest rates, with most predicting a decrease of 150 basis points. Among those 98%, about 15% expect a smaller cut of 50 to 100 basis points.

The current interest rate stands at 19.50%, following a cumulative reduction of 250 basis points over the past two policy decisions, which brought the rate down from 22% to 19.50%.

For the fiscal year 2024-25, inflation is expected to remain between 10% and 11%, and the interest rate is projected to further decline to 14% to 15% by the end of the fiscal year. Additionally, the market survey predicts a depreciation in the value of the Pakistani Rupee during this period.

The cut-off yield for T-bills has decreased by 156 to 163 basis points compared to the previous monetary policy.

Inflation rates have already dropped to a single-digit figure of 9.64% in August 2024, and further declines in inflation are anticipated in September.

Reporter: Ashraf Khan