State Bank of Pakistan to announce new monetary policy

State Bank of Pakistan to announce new monetary policy

KARACHI: The State Bank of Pakistan’s Monetary Policy Committee will meet on Friday (May 15) in Karachi to decide the country’s monetary policy.

The central bank is expected to issue the Monetary Policy Statement through a press release on the same day.

This would mark the fourth monetary policy announcement since January 2020.

The monetary policy decision comes at a time of increased concern regarding the impact of the Covid-19 coronavirus outbreak on Pakistan’s economy.

The State Bank had previously slashed the policy rate by 425 basis points in March and April, from 13.25pc to 9pc.

It had cut the policy rate by 75 basis points from 13.25pc to 12.5pc on March 17, by a further 150 basis points to 11pc on March 24, and by 200 basis points to 9pc on April 16.

In the last monetary policy statement on April 16, the State Bank had said Pakistan’s economy is expected to contract by 1.5pc in fiscal year 2020, before recovering to around 2pc growth in fiscal year 2021. Inflation was also expected to be closer to the lower end of the previously announced 11-12pc range this fiscal year, and to fall to 7-9pc range next fiscal year.