KARACHI: The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) is scheduled to meet today (Monday) to decide the key policy rate.
Governor SBP Jameel Ahmad will brief the media in a press conference following the meeting. In its previous meeting held on December 15, 2025, the committee surprised the market by cutting the policy rate by 50 basis points to 10.50 percent, as average inflation remained within the target range of 5 to 7 percent.
Analysts are expecting further monetary easing in today’s Monetary Policy Committee meeting, with a policy rate cut of 50 to 100 bps.
READ MORE: Single-digit rates back in sight at upcoming MPC
They say Pakistan’s economy is showing clear signs of improvement, supported by easing inflation, stronger external stability, and rising foreign exchange reserves.
This expectation is also backed by the recent auction of Government of Pakistan Market Treasury Bills, where the cut-off yields for the three- and six-month tenors fell to single-digit levels for the first time in four years.
The business community is already calling for a significant cut in the key policy rate, arguing that bringing interest rates into single-digit territory is essential to support industrial activity and economic growth.
It may be noted that Pakistan’s policy rate peaked at 22 percent in June 2024. However with the improved economic indicators, so far the Monetary Policy Committee has eased the rate by 11.50 percentage points, bringing it down to 10.5 percent so far.
Copyright Business Recorder, 2026
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