SBP Set To Unveil Monetary Policy Tomorrow

The State Bank of Pakistan (SBP) is set to unveil the Monetary Policy on Monday following a meeting of the Monetary Policy Committee (MPC), as stated in a press release issued by the central bank.

The MPC of SBP is scheduled to convene on Monday, April 29, to deliberate on the Monetary Policy, with the subsequent issuance of the Monetary Policy Statement through a press release on the same day.

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During the meeting, the MPC will assess the economic conditions to determine the interest rate. There have been calls from the business community urging the SBP to reduce the interest rate.

In March, the MPC decided to maintain the policy rate at 22 percent.

According to the MPC’s observations, inflation has started to decline notably from the second half of the fiscal year 2024. However, despite the significant slowdown in February, inflation levels remain high, with uncertainties surrounding inflation expectations.

In light of these factors, the SBP emphasized the need for a cautious approach, advocating for the continuation of the current monetary stance to bring inflation within the target range of 5 to 7 percent by September 2025.

The SBP reiterated that achieving this goal depends on sustained targeted fiscal consolidation and timely realization of planned external inflows.