The State Bank of Pakistan (SBP), which will announce the new rates on Thursday after the federal government published the budget for fiscal year 2022–23 last month, is anticipated to tighten monetary policy as it awaits the resumption of the International Monetary Fund’s programme.
The central bank tweeted, “The Monetary Policy Committee (MPC) will hold a meeting [today] and the decision will be communicated at 5:00 pm today.”In an effort to combat retail inflation that is at a 13-year high, Pakistan’s central bank is expected to increase its key policy rate by 100 to 150 basis points during its review today, according to the median estimate of a quick poll of 10 economists and market observers.The country of South Asia is coping with financial instability, a decline in reserves, and a falling currency.
Consumer prices in June increased 21.3 percent from a year earlier, according to data released on Friday. This increase was mostly caused by a 90 percent increase in fuel prices since the end of May after the government ended its expensive fuel subsidies.
