In a statement released, the State Bank of Pakistan (SBP) announced that its Monetary Policy Committee (MPC) would convene on Monday.
On the same day, it noted, the SBP will deliver the Monetary Policy Statement via press release.
Since a large interest rate reduction is anticipated, the policy is of enormous interest to all parties involved in the economy.
The management of an economy’s money supply and the methods by which fresh funds are introduced are known as monetary policy.
The rate of inflation, industry and sector-specific growth rates, and economic data like GDP all have an impact on monetary policy.
When a central bank lends money to the country’s banks, it may change the interest rates it charges. Financial organizations change rates for their clients, including companies and homebuyers, as interest rates change.
Furthermore, it has the authority to target foreign exchange rates, purchase or sell government bonds, and modify the amount of cash that banks must have on hand as reserves.
