The State Bank of Pakistan is set to announce its first monetary policy of the new year today, with expectations that the key policy rate may move into the single-digit range.
In this regard, the Monetary Policy Committee will hold its meeting at the State Bank’s head office in Karachi, where members will conduct a detailed review of economic indicators, the prevailing inflation situation, and other key economic factors.
Following the meeting, the official decision regarding the policy rate will be announced by State Bank Governor Jameel Ahmad through a press conference.
It is worth recalling that in the last monetary policy of 2025, the State Bank had reduced the policy rate by half a percentage point, bringing it down to 10.5 percent.
According to economic experts, recent Treasury bill auctions have provided clear signals of further easing, as the interest rate on government borrowing from banks has returned to single-digit levels for the first time in four years.
Survey reports also indicate that with Treasury bill yields falling into the single-digit range, the likelihood of a further reduction in the policy rate has strengthened.
Experts believe that improvements in foreign exchange reserves, better control over inflation, and rising remittances could prompt the State Bank to cut the policy rate by 0.5 to 1 percent.
