ISLAMABAD – Experts have expected further cut in the key policy rate due to drop in the headline inflation in November 2024.
The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) will meet on on Monday, December 16, 2024 to decide the key policy rate.
In November 2024, CPI inflation dropped to 4.9 per cent, the lowest in the last more than six years.
“Inflation for November 2024 has clocked in at 4.9%. This is the lowest reading in the last almost 78 months or 6.5 years,” stated Advisor to Finance Minister on Economic and Financial Reforms Khurram Schehzad in a post shared on microblogging platform X (former Twitter). He believed that easing of CPI inflation should result in more monetary easing by the SBP.
Khurram Schehzad stated that the development would led to further decline in cost of capital for businesses and industries, and higher savings on debt servicing for the government. He said that the scenario would result in an improved fiscal balance in the coming months/quarters.
Per the Pakistan Bureau of Statistics (PBS), inflation eased to 4.9% in November 2024 as compared with 7.2% in October 2024.
In its last MPC held in November, the SBP cut policy rate by 250 basis points (bps) to 15%.
