SBP to Announce Monetary Policy On Monday

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet next week on Monday to decide on the Monetary Policy. The central bank will issue the Monetary Policy Statement through a press release on the same day. According to a survey conducted by Topline Securities, participants are split on whether SBP will cut rates or maintain the status quo in the upcoming MPC meeting. Survey showed 51 percent of participants expect the policy rate to remain unchanged at 22 percent, while the remaining 49 percent anticipate a policy rate cut. No participants expect an increase in interest rates. In the previous MPC meeting held on March 18, 2024, SBP decided to keep the policy rate unchanged. While arriving at the decision, MPC noted that inflation, in line with earlier expectations, has begun to decline noticeably from 2HFY24. Sane minds see the central bank adopting a cautious approach despite a few encouraging trends. Forecast on inflation is expected to play a crucial role in determining the key interest rate next week.