SBP to announce bi-monthly new monetary policy tomorrow

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  • The bank had hiked policy rate by 150 basis points to 10pc in November last year  

The State Bank of Pakistan (SBP) would announce its decision with regard to its monetary policy for the coming two months on Thursday (tomorrow).

According to a statement announced by the central bank, the Monetary Policy Committee (MPC) of SBP will meet tomorrow in Islamabad, after which SBP Governor Tariq Bajwa will unveil the monetary policy in a press conference.

Some economic analysts expect a further hike of 50 to 100 basis points in interest rate by the central bank in its bi-monthly interest rate policy review meeting. Other experts, however, advise against the increase in interest rate, insisting to leave the rate unchanged.

The bank had hiked the monetary policy rate by 150 basis points in November last year to 10 per cent, while it has hiked the interest rate by overall 4.25pc since January last year.

However, a majority of respondents in the recent survey of bankers and brokers indicated that SBP was likely to keep the policy rate unchanged in its upcoming monetary policy this month.

The central bank announces its policy on the interest rate after every two months in view of the state of the national economy. The bank’s policy rate entails managing liquidity in the money market with an objective to keep the short-term interest rates stable and aligned.

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