ISLAMABAD: The State Bank of Pakistan (SBP) will announce the Monetary Policy (MPC) on Monday, which is expected to overlook the financial and fiscal situation of Pakistan.
The MPC will examine the overall financial and fiscal situation, major economic indicators, the study of multiple sectors, and major developments that have taken place since the announcement of the previous monetary policy, while its decisions will be communicated by the central bank through the Monetary Policy Statement on the same day.
Market experts expect that the State Bank of Pakistan will decrease the interest rate by 50 to 100 bps as the opening interest rate is currently 12 per cent.
In the FY2024- 25, SBP has decreased the interest rate by 10 per cent due to improvement in the economic indicators. Additionally, inflation is reported to have decreased in April 2025, whilst the current account is also surplus with $1.20bln.
The MPC, in its previous meeting on March 10, 2025, indicated a cautious approach by retaining the policy rate at 10 per cent at the time of the previous Monetary Policy statement, taking into consideration inflation expectations and position of external account.
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