Monetary policy on 28th

KARACHI: The State Bank of Pakistan (SBP) will announce its monetary policy for the next two months on January 28 (Tuesday), the central bank said in a statement issued on Tuesday.

Most analysts expect the Monetary Policy Committee of the SBP to keep the policy rate unchanged at 13.25 percent at the bimonthly policy review meeting, as energy tariff adjustments might keep inflation elevated.

The National Consumer Price Index inflation clocked in at 12.6 percent in December, compared with 12.7 percent in November.

“Analysts are quite confident that uptick in inflation will keep the interest rates on the higher side, but also point out to the increasing demand by businesses and even the political leadership to cut interest rates,” Tresmark, an application that tracks financial markets, said in a report. “However, there is unanimity that there will be no rate cut in this MPS [monetary policy statement],” it added.