According to experts cited by The News, the State Bank of Pakistan (SBP) is expected to further lower its benchmark interest rate at its policy meeting later this month in response to falling inflation.
When the SBP’s Monetary Policy Committee (MPC) meets on December 16, the majority of experts and brokerage firm surveys predict that the MPC will lower the policy rate by 200 basis points (bps).
In November, the SBP lowered its benchmark interest rate by 250 basis points to 15%. Since June, the SBP has lowered interest rates 700 basis points four times in a row.
November’s consumer price index (CPI) came in at 4.9%, well below the consensus of the market.
“This figure puts inflation even lower than the 5%–7% target range set by the SBP.
