The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is scheduled to convene next week on Monday to deliberate on the country’s Monetary Policy.
The SBP will release the Monetary Policy Statement through a press release on the same day.
As per a survey conducted by Topline Securities, participants are divided on whether the SBP will opt for a rate cut or maintain the status quo in the upcoming MPC meeting.
The survey revealed that 51 percent of participants anticipate the policy rate to remain steady at 22 percent, while the remaining 49 percent expect a policy rate cut. None of the participants foresee an increase in interest rates.
During the previous MPC meeting held on March 18, 2024, the SBP decided to keep the policy rate unchanged. The decision was made in consideration of the noticeable decline in inflation, which was in line with earlier projections, observed from the second half of the fiscal year 2024.
Experts suggest that the central bank may adopt a cautious approach despite some positive indicators. The forecast on inflation is anticipated to be a significant factor in determining the key interest rate during the upcoming MPC meeting.