KARACHI: The SBP policy rate decision is due Monday, September 14, with most market participants expecting the State Bank of Pakistan to keep its benchmark rate unchanged at 11.5%.
A Topline Securities survey cited by Business Recorder showed 84% of respondents expected no change, while 14% forecast a 50-basis-point increase and 2% expected a 100-basis-point hike.
The Monetary Policy Committee last kept the rate at 11.5% on July 27. The rate has stood at that level since the SBP raised it by 100 basis points from 10.5% in April amid heightened inflation risks linked to the Middle East conflict and elevated energy costs.
Read: SBP Policy Rate Remains at 11.5% Amid Inflation Risks
Inflation has accelerated ahead of today’s decision. The Pakistan Bureau of Statistics reported headline consumer inflation of 11.1% year-on-year in August, up from 9.2% in July.
Pakistan’s external account has improved slightly. SBP data recorded a USD 328 million current-account deficit in July, compared with a USD 814 million deficit in June.
The central bank’s foreign-exchange reserves stood at USD 18.33 billion as of September 4, according to the latest SBP economic-data snapshot, while the policy rate remained at 11.5%.
