The State Bank of Pakistan is set to unveil its Monetary Policy today.

In order to decide on monetary policy, the State Bank of Pakistan (SBP) announced in a news release that its Monetary Policy Committee (MPC) will convene today.

The MPC will examine the state of the economy and financial system as a whole, as well as key indicators, statistics from various industries, and significant events that have occurred since the previous monetary policy was announced.

The SBP already lowered the interest rate by 200 basis points on September 12 in a significant decrease. In the policy, the central bank cut the rate by two percent to 17.5%.

Stakeholders anticipate a sizable interest rate reduction today.

After a second straight month of single-digit inflation, with October’s reading at 7.2%, the capital market is expecting a 200 basis point decrease, bringing the rate down to 15.5%.

The business associations are requesting that the SBP lower its key policy rate from the current 17.5% to 12.5%, a 400–500 basis point reduction.