SBP to announce next monetary policy on June 16

KARACHI: The State Bank of Pakistan (SBP) will announce the next monetary policy on June 16 (Monday).

The Monetary Policy Committee (MPC) of the central bank will meet on Monday, to ponder over the economic conditions and to decide the interest rates going forward.

The SBP will announce the monetary policy through a press release after the monetary policy decision, a statement issued on Thursday said.

As of now, the applicable monetary policy states the interest rates to be at 11 per cent. This was decided by the MPC in its last meeting held on May 5. The committee had cut the policy rate by 100 basis points (bps) in that meeting.

The central bank has cut the rate by 1,100 bps since June 2024, from an all-time high of 22 per cent. The decision to gradually reduce the policy rate had come in wake of the declining inflation.

However, with the announcement of the new budget and with new growth and inflation targets now on the drawing board, the MPC might decide to increase the policy rate this time around. Some market experts are also expecting it to stay stagnant until the next cycle.

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