Next Monday, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will convene to deliberate on the Monetary Policy. Following the meeting, the central bank will release the Monetary Policy Statement via a press release.
As per a survey conducted by Topline Securities, opinions are divided regarding whether the SBP will opt to reduce rates or maintain the current status in the upcoming MPC meeting.
Results from the survey indicate that 51 percent of respondents anticipate the policy rate to remain steady at 22 percent, while the remaining 49 percent foresee a potential rate cut. None of the participants predict an increase in interest rates.
During the previous MPC session held on March 18, 2024, the SBP chose to maintain the policy rate unchanged. The MPC acknowledged that inflation, as anticipated, had begun a noticeable decline from 2HFY24.
Despite some positive indicators, rational analysts anticipate the central bank to exercise caution. The forthcoming decision on the key interest rate is expected to heavily weigh on inflation forecasts.
