The Monetary Policy Committee (MPC) of SBP will meet on Monday, June 16, 2025, to decide on the policy rate, the central bank announced on Thursday.
The SBP said it will issue the Monetary Policy Statement through a press release on the same day.
In its last meeting held on May 5, 2025, the MPC cut the policy rate by 100 basis points (bps) to 11%.
This was the lowest policy rate since March 2022 (9.75%). The central bank has cut the rate by 1,100bps since June from an all-time high of 22%.
At the time, the MPC noted that inflation declined sharply during March and April, mainly due to a reduction in administered electricity prices and a continued downtrend in food inflation.
“Core inflation also declined in April, primarily reflecting favourable base effects amidst moderate demand conditions.
“Overall, the MPC assessed that the inflation outlook has improved further relative to the previous assessment.
“At the same time, the Committee viewed that the heightened global uncertainty surrounding trade tariffs and geopolitical developments could pose challenges for the economy. In this backdrop, the MPC emphasised the importance of maintaining a measured monetary policy stance,” read the statement.
The Consumer Price Index (CPI)-based inflation increased to 3.5% on a year-on-year basis in May 2025 as compared to 0.3% in the previous month and 11.8% in May 2024, revealed data released by the Pakistan Bureau of Statistics (PBS).