KARACHI: The State Bank of Pakistan (SBP) will announce the Monetary Policy Statement on Monday (Jan 23).

The Monetary Policy Committee (MPC) of the State Bank will meet on Monday to review the key economic indicators and decide about the monetary policy.

State Bank Governor Jameel Ahmad will announce the monetary policy decision at a press conference the same day after the MPC meeting.

Most of economists believed that MPC may increase the key policy rate on high inflation outlook and deteriorating external account situation. In the previous meeting held on November 25, 2022, the committee raised the policy rate by 100 basis points (bps) to 16 percent, aimed at reducing inflationary pressure and containing the risk to financial stability.

Currently, the key policy rate stands at 23-year high. Previously, it was 16.5 percent in 1998. Cumulatively, the committee has increased the rate by 625 basis points during last calendar year.

Copyright Business Recorder, 2023