State Bank to announce monetary policy tomorrow

KARACHI: The State Bank of Pakistan (SBP) will announce its second monetary policy of the year on Monday, March 10 (tomorrow).

As per the details, the central bank said in a statement earlier that the Monetary Policy Committee (MPC) of the State Bank will meet tomorrow to decide on the monetary policy.

The MPC will review the overall financial and monetary situation, key economic indicators, sectoral data and important developments since the announcement of the previous monetary policy, while the central bank will inform about its decisions through the Monetary Policy Statement.

Experts say that the State Bank may cut the interest rate by one or two percentage points.

The bank’s current interest rate is 12 percent while inflation has reached its lowest level.

The MPC had decided to cut the policy rate by 100 basis points to 12 percent in its previous meeting on January 27, 2025, adopting a cautious approach, due to the continuous decline in inflation and gradual improvement in economic indicators and current account.

The Committee noted improvements in economic indicators including the current account balance, inflation, external funds, monetary management and foreign reserves but was cautious about the possibility of a rise in inflation in the coming months as well as uncertainty in the global economic policy environment.

Considering developments and emerging risks, the MPC stressed the need for a prudent monetary policy stance to ensure price stability, which is essential for sustainable economic growth.