The State Bank of Pakistan’s Monetary Policy Committee (MPC) decided on Monday to keep the policy rate unchanged at 12%.
The committee, which met in Karachi, evaluated the country’s financial and economic conditions, reviewed key economic indicators, analyzed sector data, and considered significant developments since the last policy meeting.
While the policy rate remains steady, experts had speculated that the State Bank might reduce the interest rate by up to one percent, as inflation has dropped to its lowest point in nearly a decade. The last rate change, on January 27, saw a 100-basis-point cut, bringing the rate down to 12% due to easing inflation and improving economic indicators.
During the meeting, the MPC noted positive trends such as improvements in the current account balance, foreign capital inflows, financial management, and foreign exchange reserves. However, the committee also highlighted the need for caution, given potential inflationary pressures and uncertainties in global economic policies.
Considering these developments and potential risks, the MPC stressed the importance of a careful monetary policy to ensure price stability, which is crucial for sustainable economic growth.
