SBP to announce Monetary Policy tomorrow
Karachi: The State Bank of Pakistan (SBP) will announce Monetary Policy through a press release announced on Friday, January 26, 2018, said a statement on Thursday.
Earlier this month it was learnt that the monetary policy committee minutes were released and despite external vulnerabilities, 8 out of 9 members voted to keep the interest rate at 5.75 per cent.
Amidst the political and economic challenges the nation is currently facing, the monetary policy is much awaited.
The SBP in the last monetary policy announced on November 24, 2017 kept the policy rate at 5.75 percent on anticipations of gain in exports on account of favorable global economic conditions, improvement in domestic energy supplies, and incentives given to exporting industry.
The brokerage report said that overall, we slightly alter our interest rate hike expectation where we now see tightening to begin from May 2018 compared to July 2018.
Analysts said that they see inflation for January at around 4.71 percent because of a decrease in food prices.
The SBP, in its recently released first quarterly report for this fiscal year, maintains macroeconomic projections, but sees more upside risk to the inflation target of 6.0 percent.
The SBP also expressed concerns over the widening external current account. It said an increase in the current account deficit along with growth in economic activity was a recurring phenomenon for Pakistan, and one that has the tendency of disrupting growth cycles.