Karachi September 5 2024: In the last Monetary Policy Committee meeting held on 29th July 2024 six members voted for a rate cut of 100 basis points, according to minutes of MPC released by State Bank of Pakistan.
“The MPC decided to decrease the policy rate by 100 bps with a majority of six votes out of eight, while two Members voted to decrease the policy rate by 50 bps” states the minutes.
The policy rate is reduced by 100 bps to 19.5 percent in the MPC held on 29th July 2024.
The staff apprised the Committee about the medium-term inflation projections within a general equilibrium framework. This time, the model took into account the impact of two developments into the baseline: first, lower than anticipated inflation outcome for June 2024; and second, lower nowcast for July 2024 inflation owing to the staggered adjustment of electricity tariffs.
Keeping in view the above development, the MPC discussed the monetary policy stance to bring the inflation down within the target range.
