KARACHI: On Tuesday, the State Bank of Pakistan (SBP) will announce its new monetary policy (today).
The central bank’s Monetary Policy Committee (MPC) will convene today to discuss economic indicators and make a decision on key policy rates.
The SBP is set to raise its policy rate by 125 basis points to handle inflation and balance-of-payments problems, according to economic experts. As the economy’s inflationary pressures progressively increase, most observers foresee more monetary tightening at today’s meeting.
In the previous monetary policy meeting held on November 19, 2021, the SBP decided to increase the number of MPC meetings from six to eight times a year in line with international best practices.
The next meeting will take place on January 24, 2022, as planned.