The State Bank of Pakistan (SBP) is set to announce a new monetary policy on Monday (today), ARY News reported.
A key meeting of the Monetary Policy Committee (MPC) is being held at the SBP’s Karachi headquarters, where policymakers are reviewing inflation trends, economic growth projections, remittance inflows, and other major macroeconomic indicators before finalising the new policy rate.
Market expectations indicate that the SBP could cut the policy rate by 50 to 100 basis points. Currently, Pakistan’s benchmark interest rate stands at 10.50 per cent.
In its last monetary policy review of 2025, the central bank reduced the base rate by half a percentage point to 10.5 per cent. Recent economic signals, however, suggest the SBP may take a more decisive step this time.
Treasury bill auctions have already shown a marked decline in government borrowing costs, with rates falling into single digits for the first time in four years — a strong indication that monetary easing may be imminent.
Economists believe the scope for a half- to one-percentage-point cut is supported by steady foreign exchange reserves, a controlled inflation path, and rising remittance inflows from overseas Pakistanis. Such a move would lower borrowing costs for businesses and consumers and could help stimulate economic activity and investment.
With the MPC’s decision keenly awaited by markets, banks, and investors, today’s announcement is expected to set the tone for Pakistan’s economic strategy for the first half of 2026 and beyond.
