KARACHI: The State Bank of Pakistan (SBP) will unveil its second monetary policy of the year on Monday, March 10.
The Monetary Policy Committee (MPC) will meet to review the financial and fiscal situation, assess economic indicators, and analyze major developments since the last policy announcement. The SBP will communicate its decision through the Monetary Policy Statement.
Experts predict that the central bank may cut the interest rate by 1% to 2%, given the declining inflation and overall economic stability. Currently, the interest rate stands at 12%, while inflation has reached its lowest level in recent months.
In its previous meeting on January 27, 2025, the MPC reduced the policy rate by 100 basis points, lowering it to 12% due to the downward trend in inflation and gradual economic improvement. The committee noted positive developments in the current account balance, external inflows, monetary management, and foreign reserves. However, it remained cautious about potential inflationary pressures in the coming months and global economic uncertainties.
Given these factors, the MPC emphasized the need for a balanced monetary policy to maintain price stability, which is crucial for sustainable economic growth.
The upcoming announcement will be closely watched by investors, businesses, and policymakers, as it will shape future economic and financial strategies.
