KARACHI – Pakistan’s central bank, the State Bank of Pakistan (SBP) will announce a new monetary policy for the next two months tomorrow on Monday.
In a statement, the bank said the Monetary Policy Committee (MPC) will review economic indicators at a meeting and will decide on whether to change or retain interest rates.
As of now, State Bank’s policy rate is set at 22 percent, the highest in the last 2 decades in line with the demands of the International Monetary Fund as the country battled from sky-high inflation.
Experts say interest rates are likely to remain unchanged despite some downward trend in inflation.
State Bank’s monetary policy is a set of tools that MPC uses to control the supply of money to promote economic growth and decrease inflation. Pakistan has increased the policy rate by several times, mainly citing soaring inflation.
Inflation in the crisis hit country remains high since mid-2022, while people are paying elevated prices for oil prices, surge in electricity and gas tariffs.
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