KARACHI – The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet on Monday, November 04, 2024 to decide about the monetary policy.
Later on, SBP will issue the Monetary Policy Statement through a press release on the same day.
As per the media reports, policy rate is expected to drop by 200 basis points amid decrease in inflation and a low current account deficit.
The inflation comes down to the lowest in 3.5 years. Ahead of the review, financial experts projected the cut to be around 200 basis points, which could bring the policy rate down to 15.5 per cent. Analysts from leading brokerage houses claimed that the significant drop in inflation will affect the decision.
As most of the traders and industrialists eye 200bps cut, some are speculating bigger reduction despite that more cut could exert pressure on rupee and impact foreign investment, especially in other emerging markets.
By end of this fiscal year, the total interest rate reduction is expected to be around 650 basis points as policy rate could fall to around 13pc. It could be a sigh of relief for investors and industries burdened by high electricity costs.
