Monetary Policy Committee to meet on January 27: SBP

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet on Monday, January 27, 2025, to decide about the monetary policy, the central bank announced on Monday

Governor SBP Jameel Ahmad will announce the monetary policy decision at a press conference on the same day after the MPC meeting.

Over the last five MPCs, the central bank has reduced the policy rate by 900 basis points (bps), as the inflation rate nosedived.

A brokerage house has said the SBP may cut the key policy rate by 100 bps.

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“Upcoming MPC may deliver a moderate 100bps rate cut, which will not excite the market, in our view; a smaller cut, however, will be taken negatively,” said Intermarket Securities in a note on Monday.

Pakistan’s headline inflation clocked in at 4.1% on a year-on-year basis in December 2024, a reading below that of November 2024 when it stood at 4.9%, showed Pakistan Bureau of Statistics (PBS) data.

In its last MPC, the central bank reduced the key policy rate by 200 bps to take it down to 13%.

Back then, the committee assessed “that the impact of the cumulative reduction in the policy rate from June 2024 is beginning to unfold and will continue to materialize over the next few quarters”.