KARACHI: The Monetary Policy Committee of the State Bank of Pakistan (SBP) is scheduled to meet on October 26 to decide the future course of interest rates. According to a market survey, most participants expect the central bank to raise the policy rate.
The survey shows that 61% of respondents anticipate an increase in interest rates. Of these, 54% expect a hike of 0.50 percentage points, while 7% foresee an increase of one percentage point. Meanwhile, 39% of participants believe the SBP will keep the policy rate unchanged.
SBP Governor Jameel Ahmad will chair the meeting. At its previous monetary policy meeting on September 14, the central bank decided to maintain the policy rate at 11.5%.
The upcoming decision is expected to have implications for inflation, economic activity and financial markets. Following the meeting, the SBP will announce its monetary policy decision and explain the reasons behind it.
The final decision on whether to raise or maintain the policy rate rests with the Monetary Policy Committee.
