Monetary Policy Committee to meet today to decide policy rate

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Karachi: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet today at SBP Karachi to decide the key policy rate for the next month and a half.

According to the SBP, the Committee will issue the Monetary Policy Statement through a press release as well.

In its last meeting on August 22, the MPC decided to keep the policy rate unchanged at 15%.

“With recent inflation developments in line with expectations, domestic demand beginning to moderate, and the external position showing some improvement due to a lower trade deficit and resumption of the IMF (International Monetary Fund) program, the MPC felt that it was prudent to take a pause at this stage,” the MPC had said after the meeting.

This time as well, as many analysts believe, the Committee could keep the policy rate unchanged considering a fall in inflation reading to 23.2% in September compared to a 47-year high of 27.3% in the prior month.

Compared to the last meeting, this time there is a new Finance Minister, who is following his old recipe of running a controlled economy, and will like to see an easy monetary policy and a new Governor of the State Bank.

It is important to know that since September 2021, the SBP has increased the rate by a cumulative 800 basis points to hit 15%.

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