State Bank of Pakistan (SBP) is set to announce the Monetary Policy tomorrow following a meeting of the Monetary Policy Committee (MPC).
In a statement released by the central bank, it was mentioned that the MPC of SBP would convene on Monday, April 29, to deliberate on the Monetary Policy.
The statement further indicated that the SBP would subsequently issue the Monetary Policy Statement via a press release on the same day.
The MPC will determine the interest rate after reviewing the economic situation. Notably, the business community has been advocating for a reduction in the interest rate.
In March, the MPC opted to maintain the policy rate at 22 percent.
The MPC observed that inflation, as anticipated, has begun to decrease notably from H2-FY24. However, despite the significant slowdown in February, inflation levels remain high, with a vulnerable outlook due to elevated inflation expectations.
In response, the SBP stressed a cautious approach and stressed the importance of continuing the current monetary stance to bring inflation down to the target range of 5 to 7 percent by September 2025.
The Committee reiterated that achieving this goal is contingent upon sustained targeted fiscal consolidation and the timely realization of planned external inflows, as stated in the SBP’s Monetary Policy Statement last month.
