The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will convene on Monday, December 16, 2024, to review and decide on the country’s monetary policy, as confirmed by a press release issued today. Following the meeting, the SBP will release the Monetary Policy Statement on the same day to inform the public of its decision.
Analysts largely anticipate that the central bank will lower the policy rate by 200 basis points (bps), bringing it down to 13%. This expectation comes after the SBP surprised markets with an aggressive 250bps rate cut during its last meeting, well above the expected 200bps reduction.
Despite having sufficient room to reduce rates further, the SBP is likely to take a more cautious approach this time. The central bank is expected to prioritize maintaining positive real interest rates while focusing on forward-looking inflation trends, rather than making sharp cuts.
