Daily Times

The State Bank of Pakistan announced on Monday that its Monetary Policy Committee will meet on Thursday, September 12, 2024, to review economic data. According to a report by Topline Research, which conducted a market survey in preparation for the meeting, the majority of respondents expect a reduction in the interest rate by 150 basis points. The survey indicated that 98% of participants foresee a cut in interest rates, with most predicting a decrease of 150 basis points. Among those 98%, about 15% expect a smaller cut of 50 to 100 basis points. The current interest rate stands at 19.50%, following a cumulative reduction of 250 basis points over the past two policy decisions, which brought the rate down from 22% to 19.50%. For the fiscal year 2024-25, inflation is expected to remain between 10% and 11%, and the interest rate is projected to further decline to 14% to 15% by the end of the fiscal year. Additionally, the market survey predicts a depreciation in the value of the Pakistani Rupee during this period. The cut-off yield for T-bills has decreased by 156 to 163 basis points compared to the previous monetary policy.