ISLAMABAD – All eyes are on State Bank of Pakistan as the central bank is expected to cut key interest rate after keeping it at record high 22 percent for over year.
State Bank is slated to convene on June 10, after the country’s recent CPI report, which showed the lowest reading in 30 months at 11.8pc in May.
Ahead of MPC moot, a poll conducted by an international media outlet comprising 16 analysts suggests a 100 basis-point (bps) rate cut by the State Bank of Pakistan (SBP). Ten analysts expect a 100 bps cut, one foresees a 150 bps reduction, and four expect a 200 bps decrease.
One respondent sees State Bank to maintain the current rates despite lowering inflation.
The economic growth of the fifth most populous country has been sluggish in recent years in wake of stringent reforms under IMF bailout to stabilize its faltering economy.
Experts also see GDP growth to be around 2 percent in the current fiscal year ending in June, after experiencing negative growth the previous year. The government aims to achieve 3.5pc growth this year, anticipating a rise in economic activity.
The government plans to formally request a new, longer-term IMF bailout summer, following the completion of a short-term program earlier this year that helped prevent a default.
