ISLAMABAD – State Bank of Pakistan is expected to hold Policy Rate unchanged on June 16, in the first meeting after the Budget 2025.
The central bank is set to unveil its monetary policy on June 16 as Karachi-based brokerage expected no change in policy rate in the wake amid cautious economic outlook.
A recent survey conducted by leading brokerage house shows more than half of market participants expect interest rates to remain the same, with less than 20 percent forecasting 50 BPS cut.
Sources familiar with development claimed State Bank has scope for further 100bps rate cut, but it will keep rates steady. The upcoming announcements regarding gas and electricity tariffs are expected before the new fiscal year begins.
In the last policy review, State Bank of the Monetary Policy Committee cut the policy rate by 100 basis points to 11pc, effective May 6, 2025, after a sharp drop in inflation driven by falling food prices and reduced electricity tariffs.
MPC highlighted improved inflation expectations and better economic indicators, including modest GDP growth, record-high remittances, and stronger consumer and business sentiment. The external sector remained supported by a current account surplus, strong remittance inflows, and reduced oil import costs, with SBP reserves expected to reach $14 billion by June 2025.
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