Analysts predict status quo on interest rate amid persistent inflation trends.
The State Bank of Pakistan (SBP) is set to announce its monetary policy decision on Monday, following a meeting of the Monetary Policy Committee (MPC) chaired by Governor Jameel Ahmed on October 27.
During the session, the MPC will assess key macroeconomic and microeconomic indicators, including inflation, exchange rate movements, and fiscal trends, before deciding on the policy interest rate for the upcoming period.
Experts Expect No Change in Policy Rate
Economic analysts widely anticipate that the SBP will maintain the current interest rate in light of ongoing inflationary pressures. Despite a gradual improvement in some economic indicators, inflation remains above comfort levels, reducing the likelihood of a rate cut.
A recent survey report revealed that 88% of respondents expect the policy rate to remain unchanged at 11%, while 10% foresee a 50-basis-point reduction, and only 2% anticipate a 1% cut.
Financial experts note that the central bank’s cautious approach reflects its focus on price stability and exchange rate balance while supporting moderate economic recovery.
The upcoming policy announcement will be closely monitored by investors, businesses, and financial institutions, as it could shape borrowing costs and future economic trends in the country.
