KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet on Monday to decide about the Monetary Policy. Governor SBP Jamil Ahmed will chair the monetary policy meeting to be held on, October 30, 2023, at SBP Karachi.

The previous monetary policy meeting held on September 14, 2023, maintained the policy rate at 22 percent as inflation outturn was reflecting the continuing declining trend in inflation from its peak of 38 percent in May to 27.4 percent in August 2023.

Market sentiment for upcoming monetary policy also remained unchanged for the key policy rate. The government has recently announced a substantial reduction in fuel prices, while the exchange rate has also improved and the Pak Rupee significantly gained against the US dollar.

However, analysts said that pressure on interest rates will rise again if inflation doesn’t slow down significantly over the next few weeks. The government may need to increase vigilance on retailers and trade bodies to ensure that the reduction in fuel prices is transmitted to the end user, they added.

It may be mentioned here that the Monetary Policy Committee of the SBP has adopted a tight monetary policy for the past 18 months to control the rising inflation.

Copyright Business Recorder, 2023