The State Bank of Pakistan (SBP) is set to reveal the year’s first monetary policy on January 27, following a Monetary Policy Committee (MPC) meeting scheduled for Monday.
During the meeting, key economic indicators will be reviewed to determine any changes in the base interest rate. The SBP governor will announce the committee's decision at a press conference later that day.
Analysts expect a potential 1% reduction in the current 13% policy rate, citing a slowdown in inflation as a key factor. Such a move would align with Prime Minister Shehbaz Sharif's recent statement hinting at interest rate cuts to support economic recovery and growth.
On Thursday, SBP Governor Jameel Ahmad projected Pakistan’s economic growth to surpass 3% in the current fiscal year, with further acceleration anticipated in the coming year.
Speaking at a press conference, the governor emphasized the need for stable and gradual growth to avoid balance of payments issues. He noted that while Pakistan's average economic growth over the last decade was 3.5%, periods of rapid growth often led to challenges in subsequent years.
"The key to sustainable growth is gradual and consistent progress," Governor Ahmad stated, reinforcing the SBP's commitment to long-term economic stability.
