SBP to Announce FY25’s First Monetary Policy Next Week

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet next week on Monday, July 29, 2024, to decide on the Monetary Policy. This was stated by Deputy Governor State Bank of Pakistan, Saleem Ullah at the sidelines of a conference in Karachi. The central bank last month decreased the interest by 150 basis points to 20.5 percent, the first decrease in four years. The central bank may opt for a cautious approach despite a few encouraging trends. A forecast on inflation is expected to play a crucial role in determining the key interest rate next week. In its previous MPC announcement, SBP noted some upside risks to the near-term inflation outlook associated with the new 2024-25 budgetary measures and uncertainty regarding future energy price adjustments.