SBP Monetary Policy Committee meeting on 10th

ISLAMABAD: The meeting of the Monetary Policy Committee of State Bank of Pakistan (SBP) will be held on March 10.

On the last Monday of January, the meeting of Monetary Policy Committee of the State Bank of Pakistan had reduced the policy rate/bank rate by only one percent from 13 percent to 12 percent. Prime Minister Shehbaz Sharif commented on January 30 that the discount rate/bank rate/policy rate of Pakistan should be further reduced.

The prime minister’s comment had given the impression that the Monetary Policy Committee of will review the reduction by 200 basis points in its meeting on March 10.

However, sources said it can be justified by financial circles that the rate of decrease of core inflation is not satisfactory. Therefore, on Monday, the Monetary Policy Committee of the State Bank will likely cut its policy rate/discount rate/bank rate by 10 basis points to 100 basis points.

In simple words, reduction in Pakistan’s current policy rate/bank rate/discount will be between half and one percent.