KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will convene on Monday, January 27, 2025, to review and decide on the country's monetary policy, the central bank announced.

Following the meeting, SBP Governor Jameel Ahmad will address a press conference to announce the committee's decision. In recent months, the central bank has adopted an accommodative stance, reducing the policy rate by a total of 900 basis points (bps) over the last five MPC meetings in response to a decline in inflation. The key policy rate currently stands at 13%, following a 200bps cut in the previous MPC session. Market analysts anticipate that the SBP may introduce a moderate 100bps reduction in the upcoming meeting. According to Intermarket Securities, while such a move may not excite the market, a smaller rate cut would likely be viewed negatively. This comes as Pakistan's headline inflation dropped to 4.1% year-on-year in December 2024, down from 4.9% in November, as reported by the Pakistan Bureau of Statistics (PBS). In its most recent meeting, the MPC noted that the impact of the cumulative rate cuts since June 2024 is beginning to materialize and will continue to unfold over the next few quarters. The central bank's decision will be closely watched as it balances the goals of stimulating economic growth and managing inflationary pressures in a challenging economic environment. The upcoming meeting is part of the SBP's regular schedule, with an advance calendar for MPC meetings covering the period from January to July 2025.