The State Bank of Pakistan is scheduled to release its second monetary policy of the year today (Monday).
The Monetary Policy Committee (MPC) will held in Karachi by today. The committee will assess the prior policies and decide on the nation’s next course for second monetary policy.
The committee will assess key economic statistics and examine the financial and economic environment. It will make major adjustments to the previous policy and analyze data from a variety of industries to formulate the next strategy.
At the end of the meeting and after finalizing the decision the central bank will release a monetary policy statement.
According media reports, the State Bank may lower interest rates by as much as 1%. Inflation has fallen to its lowest level in nearly ten years and the interest rate is now at 12%.
Earlier during its most recent meeting on January 27, the MPC took a cautious approach, lowering the interest rate by 100 basis points in response to improving economic circumstances and falling inflation by 100 basis points to 12%.
The committee acknowledged advancements in the current account balance, foreign exchange reserves, inflation trends and foreign investments.
It is important to remember that the new monetary policy will have to deal with potential inflationary pressures as well as uncertainties in global economic policies.
The MPC is set to underline the need for a cautious monetary policy stance in light of all these difficulties. It should also ensure price stability which is essential for long-term economic growth
