The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is gearing up for its upcoming meeting to make crucial decisions regarding the country’s monetary policy. The meeting is scheduled for tomorrow, and the central bank will promptly release the Monetary Policy Statement on the same day.
During its previous meeting on September 14, the MPC opted to maintain the policy rate at 22 percent. The decision factored in the latest inflation figures, which indicated a consistent decline from its peak of 38 percent in May to 27.4 percent in August 2023.
Market experts are anticipating that the MPC will likely keep the policy rate steady. A recent survey by Topline Securities revealed that a significant majority, around 70 percent of participants, anticipate no change in the policy rate, holding it at 22 percent. A smaller segment, 16 percent, anticipates a decrease in the policy rate ranging from 25-100 basis points, while 11 percent expect a more significant drop of over 100 basis points.
Only a minor 3 percent anticipate an increase in the policy rate by more than 100 basis points, with no expectations of a moderate increase ranging from 25-100 basis points. The MPC’s upcoming decision is highly awaited, given its potential implications on the country’s economic landscape.
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