KARACHI: The State Bank of Pakistan (SBP) is scheduled to hold its Monetary Policy Committee (MPC) meeting today (Monday) to decide on the key policy rate.
In the previous monetary policy meeting, held on June 30, 2025, the committee decided to keep the policy rate unchanged at 11 percent as inflation outlook was somewhat worsened in the wake of higher than anticipated adjustment in energy prices, especially gas tariffs.
Analysts are expecting that MPC will continue to keep the policy rate unchanged in meeting as inflation is projected to increase due to recent flooding.
SBP MPC meeting: policy rate likely to stay unchanged as floods fuel inflation concerns
Topline Securities survey also indicates that 72 percent of the market participant expect rate to remain unchanged owing to recent floods which may elevate food inflation and overall inflation in coming months amidst expected loss to crops and supply chain concerns.
Back in previous floods of 2010-2011, area under cultivation of major crops i.e. wheat, rice, and cotton was declined in range of 3-18 percent While rice production was also affected by 30 percent in FY11 as per data from economic survey of Pakistan.
Therefore, analysts expecting that MPC is likely to maintain status quo in upcoming meet owing to possible inflation risks emanating from recent floods and rising imports.
Copyright Business Recorder, 2025
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