SBP likely to cut policy rate for seventh consecutive time amid easing inflation
Business
MPC has cut the rate by 10pc in previous six sessions
KARACHI (Dunya News) – The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is all set to announce the revised policy rate, with businessmen expecting another cut in it.
The central bank will announce the interest rate for the next two months. It is yet to be sees whether the rate will remain unchanged or revised down in line with the anticipation of stakeholders.
Experts are of the view that the policy rate will be deceased to further accelerate the business activities in the country.
A significant drop in inflation rate beyond the projection can lead to seventh consecutive cut in the interest rate.
The MPC had slashed the policy rate by 10 percent in its previous six sessions. In January 2025, it decreased the rate by one percent to 12pc.
12PC POLICY RATE
In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.
The policy rate was reduced to 12pc after slashing it by 1,000bps from 22pc since June 2024.
The SBP governor said the decision was taken with careful consideration. "Although inflation is expected to decline next month (February), core inflation remains a pressing concern," he stated.
Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.
