Karachi October 6 2022: The Monetary Policy Committee of SBP will meet on Monday, October 10, 2022 at SBP Karachi to decide about the Monetary Policy.
Later on, SBP will issue the Monetary Policy Statement through a press release on the same day.
This will be the first Monetary Policy Committee meeting after Ishaq Dar has taken the charge of finance ministry.
Pakistan’s new finance minister Ishaq Dar said that he will work to rein in inflation while cutting interest rates and is of the opinion that the rupee is undervalued.
In yesterday’s T-Bill Auction, cut-off yields decreased by 24-26 basis points from all-time high of 16 percent as Finance minister indicates lowering of interest rates as he expects inflation to fall to 12-14 percent by end of this fiscal year on strengthening of Pakistan Rupee.
During the last ten consecutive sessions Pakistan Rupee gains PKR 17.77 or 8.0% from recent low of 239.71.
In the last meeting, The MPC unanimously decided to keep the policy rate unchanged at 15 percent.
Going forward, Monetary Policy Committee expects the factors explaining a likely moderation in the inflation rate include; i) favourable base effect for FY24 due to higher-thananticipated inflation in FY23, ii) fuller impact of previous monetary tightening, iii) strong fiscal consolidation as planned under the IMF program, iv) moderation of international commodity prices owing to the resolution of supply-chain issues, and v) economic slowdown.
