MPC meeting likely to reduce interest rate

ISLAMABAD: A meeting of the Financial Policy Committee of State Bank of Pakistan is being convened on November 4, which will be chaired by Governor State Bank of Pakistan Jameel Ahmed.

In the meeting, the State Bank and top officials of the banking sector will review the national economy and inform the nation about the national economic indicators. Regarding the important meeting of the Financial Policy Committee of the State Bank on November 4, a former governor of the State Bank of Pakistan said the participants of the State Bank’s financial policy committee meeting will decide to reduce the policy rate (interest rate) by one to one and a half percent.

The Monetary Policy Committee was in a position to reduce it more but in the last three weeks or so, the sensitive price index increased. Therefore, the Monetary Policy Committee has decided as a precaution to cut the interest rate, instead by two and a half percent, to 16pc.

Earlier, the Monetary Policy Committee reduced the policy rate from 22% to 20.5% on June 10, 2024 and reduced it by one percent to 19.5% in July. Further, on September 12, 2024, the State Bank reduced the policy rate from 19 and a half to 17.5 percent.