1 week Ago By Monitoring Desk
Markets watch closely as MPC reviews interest rate stance amid easing inflation The State Bank of Pakistan (SBP) has announced that its Monetary Policy Committee (MPC) will meet on Monday, December 16, 2024, to deliberate on the monetary policy stance. The decision will be communicated later that day through a press release, according to a statement issued by the central bank. The meeting comes at a critical juncture as investors and businesses anticipate a potential policy rate cut, following the SBP’s surprise 250 basis point reduction in November.
With inflation moderating and economic sentiment improving, analysts widely expect the central bank to introduce further easing measures to support economic growth. The market response to the upcoming monetary policy announcement has been overwhelmingly positive, as reflected in the recent rally at the Pakistan Stock Exchange (PSX). Last Friday, the KSE-100 Index closed above the 109,000 mark for the first time in history, driven by heightened optimism over a possible rate cut, and has now crossed the 111,000 mark.
Market observers will closely analyze the SBP’s statement for insights into the trajectory of the country’s monetary policy, particularly against the backdrop of improving macroeconomic indicators. The central bank’s decision is expected to have significant implications for credit markets, investment activity, and overall economic growth. The Monetary Policy Statement, scheduled for release on December 16, will provide further clarity on the SBP’s assessment of inflation trends, growth prospects, and external sector performance Save my name, email, and website in this browser for the next time I comment.
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