How much of Policy Rate cut is expected in today s State Bank s MPC review?

ISLAMABAD – All eyes are on State Bank of Pakistan which is expected to cut key interest rate amid a considerable drop in inflation.

SBP Governor Jameel Ahmad will announce the monetary policy decision at a presser on the same day after the meeting.

A recent poll by Topline Securities hinted at 100 basis points cut in today’s review amid drop in inflation.

It is expected to be second consecutive rate cut after 150 basis point reduction at the last meeting.

The policy rate is further expected to move down to 300-400 basis points, with inflation averaging between 13% and 13.5% for fiscal year 2025, per reports.

Since the last MPC review, Karachi Interbank Offered Rate (KIBOR) and six-month Treasury Bills rates also saw declined by 83-84 basis points, now hovering around 19.84% and 19.52%, respectively.

SBP cuts monetary policy rate by 150bps to 20.5

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