KARACHI: The State Bank of Pakistan (SBP) will announce the Monetary Policy for next two months on Monday (today). Dr Reza Baqir, Governor State Bank of Pakistan, will chair the Monetary Policy Committee (MPC) meeting on Monday at the SBP head office Karachi for a decision on key policy rate. Previous scheduled meeting of the committee was due in July, however the meeting was postponed as the SBP believed that it had already taken a number of measures to support the economy.

In the last emergency meeting held on June 25, 2020, the MPC decided to reduce the policy rate by 100 bps to 7 percent to address the risks to domestic economic growth. The last cut brings the cumulative reduction in the policy rate since mid-March to 625 bps aimed to counter the negative effects of Covid-19 pandemic. Economists are expecting that the interest rate is likely to remain unchanged at 7 percent for the next two months.

Copyright Business Recorder, 2020