KARACHI – The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) will meet on Monday, January 29, 2024 (tomorrow) to review the policy rate.
SBP Governor Jameel Ahmad will announce the monetary policy decision at a press conference the same day after the MPC meeting.
As per experts, SBP is likely to cut or maintain the interest rate in the said policy review meeting.
As the key policy rate already stands at a record high of 22, brokerage houses predicted that Pakistan’s central bank will avoid upward revision due to the economic slowdown and already high borrowing costs.
In addition to that, there are reasons to cut or maintain the policy rate at 22 per cent.
Inflation is likely to decrease in the coming months which provides a ground for a cut in policy rate.
However, last month’s and the latest weekly inflation readings are too high.
In case of a rate cut, depositors will go for other options. Keeping the rate unchanged will encourage people to save local currency for better returns.
