Pakistan’s state bank will announce the key policy rate after a meeting of the Monetary Policy Committee (MPC) on Tuesday.
As the Asian nation is recovering from the economic crisis, State Bank of Pakistan is expected to keep key interest rates unchanged. The country witnessed a surge of 1.16 percent in the combined consumption groups for the week concluding on December 7.
The bank members are meeting in the fourth meeting, with inflation expected to lower in the coming months. The country’s key rate was jacked up to an all-time high of 22 percent earlier this year and it remained at the same level for the last three rate meetings.
Several experts claimed no major tweaks in the policy rate, with a few looking for a marginal drop. The words in the market also said rupee resistance, low current account deficit and expected fall in inflation will make MPC members adjust rates by 100 bps.
As claimed by the government, the prices of the various commodities are getting increased and people bear the brunt of the situation.
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