On Monday, the State Bank of Pakistan (SBP) will declare its new monetary policy.
The Monetary Policy Committee (MPC), which is scheduled to convene today and make an announcement about interest rates, is the center of attention.
Members of the Monetary Policy Committee (MPC) will review economic data and make a decision about whether interest rates change or stay the same during today’s meeting.
In order to combat extremely high inflation and maintain the external balance, the central bank decided to raise its policy rate by a total of 1,500 basis points during the previous two years. The rate hasn’t changed since July 2023.
The nation of more than 240 million people is struggling with a depreciating currency and skyrocketing inflation, which has put the impoverished majority in a cost of living crisis.
After hitting a record low, the PKR recovered with strict administrative measures, and gasoline prices have dropped in the last two fortnightly assessments.
Experts predict that despite a little decline in inflation, interest rates will probably stay the same.
The MPC utilizes a set of instruments known as state bank monetary policy to regulate the money supply in order to spur economic expansion and lower inflation. Pakistan has raised policy rates many times, primarily due to high inflation.
Since the middle of 2022, residents in the crisis-ridden nation have been paying higher costs for gas, electricity, and oil, and inflation has been high.
