KARACHI: Monetary Policy Committee meeting will be held today, after the inflation has reached single digit and four year low, the policy rate is expected to be significantly reduced.
Federal trade body FPCCI has demanded a reduction in the policy rate by 5 percent in November and another 5 percent by December 2024.
According to the Pakistan Bureau of Statistics, inflation averaged 8.67 percent for the first four months of the fiscal year, which has come down sharply from 28.45 percent in the same period last year.
The business community and analysts are hopeful that the State Bank will cut the policy rate significantly today, however, economists say that the State Bank may take a cautious approach keeping in mind the economic concerns and not cut the policy rate significantly at once. Instead, it can be gradually reduced in two months.
