Karachi:(Report By Rukhsar Butt)According to ug news Media Europe, The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet today at SBP Karachi to decide the key policy rate for the next month and a half.According to the SBP, the Committee will issue the Monetary Policy Statement through a press release as well.In its last meeting on August 22, the MPC decided to keep the policy rate unchangedat 15%.
“With recent inflation developments in line with expectations, domestic demand beginning to moderate, and the external position showing some improvement due to a lower trade deficit and resumption of the IMF (International Monetary Fund) program, the MPC felt that it was prudent to take a pause at this stage,” the MPC had said after the meeting.
This time as well, as many analysts believe, the Committee could keep the policy rate unchanged considering a fall in inflation reading to 23.2% in September compared to a 47-year high of 27.3% in the prior month.
Compared to the last meeting, this time there is a new Finance Minister, who is following his old recipe of running a controlled economy, and will like to see an easy monetary policy and a new Governor of the State Bank.
It is important to know that since September 2021, the SBP has increased the rate by a cumulative 800 basis points to hit 15%.
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