The State Bank of Pakistan (SBP) is set to announce the first monetary policy of 2025 today (Monday), as reported by national media.
The Monetary Policy Committee (MPC), chaired by SBP Governor Jameel Ahmad, will convene tomorrow to review the monetary policy. Experts anticipate a potential 1% cut in the interest rate, citing a recent slowdown in inflation.
Inflation in Pakistan has placed significant pressure on citizens, with sharp increases in the prices of essential goods and services. Many families are struggling to afford basic necessities, including food, fuel, and healthcare, leading to financial insecurity. This economic strain has forced households to prioritize spending and make lifestyle adjustments, often at the expense of their quality of life.
Monetary policy is a key tool in addressing inflationary challenges and stabilizing the economy. Measures such as raising interest rates can help control excessive money supply and demand, which contribute to inflation.
If effectively implemented, these policies could reduce inflation, restore economic confidence, enhance purchasing power, and create a stable environment for growth and development.
