The State Bank of Pakistan (SBP) is gearing up to announce the year’s first monetary policy on January 27, 2025. The decision will be revealed following a meeting of the Monetary Policy Committee (MPC), scheduled to convene on Monday. The SBP governor will present the committee’s decision at a press conference later that day.
Key Economic Indicators Under Review
The MPC meeting will focus on evaluating Pakistan’s key economic indicators, particularly the inflation rate and overall economic activity, to determine any adjustments in the current policy rate.
Analysts anticipate a possible reduction of 1% in the existing 13% policy rate. The anticipated decrease is attributed to the recent slowdown in inflation. Prime Minister Shehbaz Sharif’s remarks on the need to lower interest rates to stimulate economic recovery have further fueled expectations of a rate cut.
Economic Growth Projections for Pakistan
SBP Governor Jameel Ahmad, during a press conference on Thursday, expressed optimism about Pakistan’s economic trajectory. He forecasted the country’s economic growth to exceed 3% for the ongoing fiscal year, with prospects of accelerated growth in the next fiscal cycle.
Governor Ahmad emphasized the importance of stable and consistent growth to mitigate balance of payments issues. “The key to sustainable growth is gradual and consistent progress,” he stated, reaffirming the SBP’s focus on long-term economic stability. Over the past decade, Pakistan’s average economic growth has hovered around 3.5%. However, periods of rapid expansion often led to challenges in subsequent years.
Implications of the Monetary Policy Decision
A potential interest rate cut could provide significant relief to businesses and consumers, fostering an environment conducive to economic recovery and growth. Lower borrowing costs are expected to encourage investments and spur industrial activity, contributing to Pakistan’s broader economic goals.
Stay updated as the SBP’s monetary policy announcement unfolds on January 27, marking a pivotal moment in shaping the country’s economic direction for 2025.
 is gearing up to announce the year’s first monetary policy on January 27, 2025. The decision will be revealed following a meeting of the Monetary Policy Committee (MPC), scheduled to convene on Monday. The SBP governor will present the committee’s decision at a press conference later that day.){kind=link}