KARACHI – State Bank of Pakistan (SBP) will announce new monetary policy today on Monday.
All eyes are on the Monetary Policy Committee (MPC) which is going to meet today and will announce a decision on the interest rates.
In today’s meeting, Monetary Policy Committee (MPC) members will consider economic indicators and will decide on whether to change or retain interest rates.
The central bank opted for a cumulative 1,500 basis points increase in its policy rate in last two years to fight sky-high inflation and support the external balance, and the rate hasn’t seen any change since July 2023.
The country of over 240 million is grappling with a weak currency, and soaring inflation that created a cost-of-living crisis for distressed masses.
With administrative measures and stern action, PKR bounced back after touching record low and the fuel prices have reduced in the last two fortnightly reviews.
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 the 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 has remained high since mid-2022, while people are paying elevated prices for oil prices, surge in electricity and gas tariffs.
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