- SBP has increased its policy rate by 1,500 basis points from October 2021.
- This rate is frozen from July 2023.
- However, some analysts expect a reduction in the policy rate by 25-100 bps.
KARACHI: State Bank of Pakistan (SBP) will announce its new monetary policy after the Monetary Policy Committee (MPC) meeting on October 30 (Monday).
Taking to X – formerly known as Twitter – the central bank said: “The Monetary Policy Committee of #SBP will meet on Monday, October 30, 2023 to take decisions regarding monetary policy. SBP will issue the monetary policy statement through a press release on the same day.
Financial pundits believe SBP’s key interest rate is likely to remain unchanged at 22% as inflation is seen to ease further due to lower fuel prices and stronger rupee, according to a report. news,
The central bank has increased its policy rate by a cumulative 1,500 basis points from October 2021 to curb rising inflation and support external balance. This rate is frozen from July 2023.
Analysts and financial market participants surveyed by brokerage firm Topline Securities expect no change in the benchmark rate in the upcoming policy review meeting on Monday.
Topline Securities said, “70% participants expect the policy rate to remain unchanged at 22%. While 16% participants expect the policy rate to be reduced by 25-100 bps and 11% participants expect it to go down by 100 bps.” will be reduced by more than.” last week, citing its survey.
“We also believe that the SBP will keep the policy rate unchanged at 22 per cent in the upcoming meeting.” However, many analysts expect the SBP to hike rates and keep them on hold until at least March 2024.
There have been new developments since the last SBP MPC meeting held on September 14. These will probably be discussed by the MPC in the upcoming meeting.
Furthermore, stabilization measures have begun to yield results. Inflation has declined to 31.4% in September 2023 after peaking at 38% in May 2023 and is expected to continue on a downward trend in the coming months, while the external account has significantly improved and the build-up of foreign exchange buffers. being done.