KARACHI – All eyes are on State Bank of Pakistan’s Monetary Policy Committee which is slated to meet on January 27, as the central bank is expected to slash policy interest rate to give further room to development.
A survey conducted by an international wire service predicted cut of around 1pc point as government is taking measures to boost economy and to improve business confidence as inflation cools down.
Fifteen analysts took part in survey and most of them predicted 100-200BPS reduction, except one who reckoned to be it constant at 13pc. Some predicted 100BPS point reduction, with some analysts projecting a 150 or even 200 basis point cut.
Policy Rate Cut in Pakistan Jan 2025
Other experts of Karachi-based brokerage house expected 150BPS cut, linking it with recent decline in inflation and the stability of the exchange rate.
The South Asian nation with ecoomony of $350billion is in economic recovery phase, buoyed by a $7 billion support package from the IMF. Latelty, consumer inflation remained to lower than 5pc in December-24, marking the lowest rate in over six years.
Amid drastic changes in inflation, State Bank of Pakistan made several changes its key interest rate by 900 basis points from a historic high of 22pc.
