State Bank of Pakistan set to announce policy rate decision today

The State Bank of Pakistan (SBP) will soon unveil its latest monetary policy for the upcoming two months.

In an official statement, the central bank declared that the Monetary Policy Committee (MPC) of SBP will convene on Monday, October 30, 2023, to determine the monetary policy. SBP will then issue the Monetary Policy Statement via a press release on the same day.

Currently, the State Bank’s policy rate stands at 22 per cent. Since October 2021, the central bank has increased its policy rate by a cumulative 1,500 basis points in an effort to combat rising inflation and bolster the external balance. This rate has remained unchanged since July 2023.

The forthcoming policy rate announcement is poised to exert a substantial influence on Pakistan’s industries and inflation rate.

In the most recent meeting held in July, the State Bank of Pakistan (SBP) resolved to maintain the interest rate at 22 per cent.

The Monetary Policy Committee of the central bank meticulously assessed economic data and the prevailing inflation situation before opting to retain the interest rate. It’s worth noting that substantial progress has been achieved in the current account, thanks to government initiatives.

This decision comes against the backdrop of Pakistan contending with a high inflation rate, currently pegged at 29.65 per cent.