In response to appeals from a variety of industries, the Monetary Policy Committee (MPC) of the State Bank of Pakistan is scheduled to convene tomorrow to assess the nation’s monetary policy. There are high hopes for a sizable interest rate reduction.
With August’s inflation rate of 9.6% and the current interest rate of 19.5%, the actual interest rate is 10%.
Due to this discrepancy, industry leaders have called for a significant reduction—up to 500 basis points—in order to promote economic expansion.
A more mild reduction of 150 to 200 basis points is anticipated by financial analysts. The MPC’s impending decision is especially important because it comes after several months of cuts totaling 2.5 percentage points.
