KARACHI – The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet on Monday, April 29 to decide about the new Monetary Policy. The MPC will review the overall economic and financial situation, major indicators, data of different sectors, and major developments taken place since the announcement of the previous monetary policy. Later on, SBP will issue the Monetary Policy Statement through a press release on the same day.
The MPC is likely to keep the key interest rate unchanged at 22 per cent as the IMF Executive Board will meet soon to evaluate $1.1 billion funding as part of the last tranche of a $3 billion Stand-By Arrangement with Pakistan.
Some experts are expecting a 100-basis-point (bps) or 50-bs cut due to positive indicators after the last MPC meeting.
The majority, however, believe that the SBP will consider reduction in key interest rate in the next MPC meeting scheduled to be held on June 10, 2024. After that, there will be a gruadual cut in key interest rate during the next fiscal year.
