Market anticipation is building ahead of the review with all eyes on the central bank’s MPC huddle. Amid the optimist, Stock Exchange also continued to witness a bullish trend.
In a poll conducted by a Karachi-based brokerage house, participants shared contrasting expectations, wherein more than one-third of them expected no changes while nearly two third are expecting a rate cut of at least 50bps to 11.5pc.
Some predicted rate cut of 100bps, with only a few predicted cut of 150bps.
Those familiar with the development said State Bank has room for around 100bps cut but officials will see the status quo in an upcoming meeting with upcoming IMF review also being considered, wherein new revenue targets and new budgetary taxation measures will get more attention.
In January 2025, the State Bank slashed key policy rate by 100 basis points, from 13% to 12%, to fix economic challenges amid a series of rate cuts since June 2024, totaling 1,000bps.
The rate cut was made amid a positive inflation outlook and improving remittances and exports, although core inflation remains a concern.
State bank of Pakistan cuts key Policy Rate by 100bps, sixth in a row
