The State Bank of Pakistan (SBP) is expected to announce the first monetary policy of the new year tomorrow (Monday).
The Monetary Policy Committee (MPC), chaired by SBP Governor Jameel Ahmad, will convene tomorrow, after which the first monetary policy for 2025 will be revealed.
Experts have anticipated a further 1% reduction in the interest rate, citing a slowdown in inflation.
In a survey on the monetary policy, analysts suggested a potential 1.5% reduction, with expectations that January’s inflation might fall below three per cent.
Karachi Inter-Bank Offered Rate (Kibor) for banks has already declined to between 11 per cent and 12 per cent.
The SBP had reduced the policy rate seven times, cutting it by up to 9%. The current base interest rate stands at 13 per cent, and Prime Minister Shehbaz Sharif indicated the possibility of further reductions.
Meanwhile, representatives of trade organisations demanded a three per cent cut in the interest rate.
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