SBP’s MPC to decide new policy rate today amid calls for massive cut

As the Monetary Policy Committee convenes today to announce the new policy rate, speculations suggest that the State Bank of Pakistan (SBP) is expected to take a cautious stance on reducing the policy interest rate despite significant room for a cut due to declining inflation.

Expectations for the rate cut vary widely between financial experts and the trade and industry sectors. While businesses demand a reduction of 400 to 500 basis points (bps) to spur economic growth, financial analysts...