KARACHI: The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Monday kept the policy rate unchanged at 11%, a decision broadly in line with market expectations. The detailed MPC statement will be released later.
In its previous meeting on July 30, the MPC had also opted for status quo, citing a weaker inflation outlook following higher energy costs, particularly gas tariffs. Analysts widely anticipated no change this time as well, given that recent flooding is expected to fuel food inflation and disrupt supply chains.
A survey by Topline Securities showed 72% of market participants expected the rate to remain steady. Arif Habib Limited echoed the sentiment, cautioning that while headline inflation and external stability provide space for easing, the flood impact, fiscal pressures, and current account risks necessitate caution.
Recent data shows inflation eased to 3% year-on-year in August, down from 4.1% in July, while the rupee gained 0.5% and petrol prices fell 3%. On the external front, oil prices dropped nearly 10% to $63 per barrel.
As of September 5, SBP reserves stood at $14.34 billion, with total liquid reserves at $19.68 billion, including $5.34 billion held by commercial banks.
