Based on the recent dip in inflation, industry experts predict that Pakistan’s interest rate will drop by two percent.
The new policy will be revealed following today’s meeting of the State Bank of Pakistan’s Monetary Policy Committee.
At the moment, the national interest rate is 22 percent. There could be a potential 2 percent drop in the interest rate, nevertheless, as a result of lower inflation.
The policy rate was held at 22 percent for the seventh consecutive session by the State Bank of Pakistan (SBP) in April.
After the bank’s Monetary Policy Committee (MPC) meeting, the announcement was made.
Within a statement, the MPC emphasized that the current monetary policy stance must be maintained in order to reduce inflation to the target range of 5–7% by September 2025.
According to the statement, “the macroeconomic stabilization measures are contributing to considerable improvement in both inflation and external position, amidst moderate economic recovery.” Inflation, according to the committee, is still quite high.
Meanwhile, strong worldwide growth seems to have brought global commodity prices down to earth. Additionally clouding their picture is the current geopolitical happenings. Furthermore, the statement said, “The near-term inflation outlook may be affected by the upcoming budgetary measures.”
