The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is scheduled to convene on Monday, May 5, 2025, amid growing expectations of a cut in the key policy rate.
According to a statement issued by the SBP, the upcoming meeting will determine the monetary policy stance for the next two months. A detailed monetary policy statement will be released the same day via an official press release.
Economists suggest that the central bank has room to reduce the benchmark interest rate by up to 200 basis points by December 2025, and anticipate a possible rate cut in the upcoming session. Recent surveys conducted among financial institutions also point toward a rate reduction, with many respondents predicting a cut of at least 50 basis points, while some foresee a decrease of up to 100 basis points.
The anticipated rate adjustment comes as Pakistan continues efforts to stimulate economic activity amid easing inflationary pressures and fragile foreign reserves.
Separately, the SBP has announced a public holiday on May 1, 2025, in observance of International Labour Day. As a result, all commercial banks and financial institutions will remain closed on Thursday.
Would you like a social media version or summary headline for this story?
