The State Bank of Pakistan (SBP) is expected to reduce the interest rate to between 10% and 10.5% starting July 31, after a long period of high rates. This major move will come during the upcoming meeting of the Monetary Policy Committee (MPC), which will be chaired by SBP Governor Jameel Ahmed. The cut may range from 100 to 150 basis points, depending on the final decision.
According to financial experts, the MPC will likely take a cautious approach while announcing the first monetary policy for fiscal year 2025–26. They believe that the interest rate could be reduced by 50 to 100 basis points, bringing it down from the current 11%. This reduction aims to support economic recovery and business growth in the country.
To improve transparency and build trust among investors and stakeholders, the SBP has decided to release an advance schedule for all monetary policy meetings. This move will help businesses and financial planners make long-term decisions more confidently. It is also seen as a step towards better financial governance.
The SBP has planned eight MPC meetings for the 2025–26 fiscal year. The first meeting will be held on Wednesday, July 30, 2025, followed by the second on Monday, September 15. The third meeting is scheduled for October 27, while the fourth will take place on December 15, 2025.
In addition, the remaining four meetings will be held on January 26, March 9, April 27, and June 15 in 2026. The central bank will release the next calendar for MPC meetings in July 2026. If any unexpected situation arises, new dates will be announced as needed.
This step shows SBP’s efforts to support economic stability while making its policy process more predictable. Businesses and financial institutions are now watching closely for the upcoming decision on July 31.