Daily Times

The State Bank of Pakistan (SBP) is set to unveil the first monetary policy of 2025 today (Monday), according to national media reports.

The Monetary Policy Committee (MPC), led by SBP Governor Jameel Ahmad, will meet tomorrow to assess the monetary policy. Analysts predict a possible 1% reduction in the interest rate, citing a recent decline in inflation.

Soaring inflation in Pakistan has placed immense financial strain on citizens, driving up the cost of essential goods and services. Many households are struggling to afford necessities such as food, fuel, and healthcare, forcing them to cut back on spending and adjust their lifestyles, often at the expense of their well-being.

Monetary policy plays a crucial role in tackling inflation and stabilizing the economy. Strategies like adjusting interest rates help regulate money supply and demand, curbing inflationary pressures.

If implemented effectively, these measures could bring down inflation, restore economic confidence, strengthen purchasing power, and foster a stable environment for sustainable growth and development.