State Bank of Pakistan to Announce New Monetary Policy

The State Bank of Pakistan (SBP) has announced that it will unveil a new monetary policy for the next two months on Monday. The Monetary Policy Committee (MPC) will convene to evaluate economic indicators and decide on potential changes to the existing interest rates.

With the State Bank’s current policy rate fixed at 22 percent, the highest in the past two decades, Pakistan is adhering to the recommendations of the International Monetary Fund (IMF) to combat substantial inflation. Despite a marginal dip in inflation, experts predict that interest rates will likely remain unchanged.

Pakistan has raised its policy rate multiple times, primarily in response to the mounting inflation. The State Bank’s monetary policy is the instrument employed by the MPC to manage the money supply, with the aim of stimulating economic growth while reining in inflation.

In this crisis-ridden nation, inflation has remained elevated since mid-2022. Citizens continue to grapple with surging oil prices and escalating electricity and gas tariffs.

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