KARACHI – State Bank of Pakistan’s Monetary Policy Committee will meet on Monday, January 27, 2025 to decide the new key policy rate.
After the MPC meeting, the SBP will announce the new key policy rate in a press conference on the same day.
The experts are expecting further curt in the key policy rate by 100-150bps to 1 to 1.5 per cent during the upcoming MPC meeting. The reason is considerable decrease in headline inflation.
If it happens, it will be the sixth straight cut as it attempts to revive economic and business sentiment as inflation slows sharply.
However, some experts believe that the SBP can keep the rate unchanged in the upcoming MPC meeting and any change will be made in the next sitting after further consideration of key factors.
The key police rate was 22 pc in June 2024. Since then, the SBP has cut the key policy rate by 900 bps to 13pc.
Consumer inflation rate slowed to 4.1pc last month. But it is mainly due to a high base one year back. Increases in energy tariffs, new taxation measures, and a potential hike in the levy on petroleum prices can cause rise in inflation in near future.
