State Bank to Announce First Monetary Policy of 2025 Today, Experts Expect 1% Rate Cut

KARACHI:The State Bank of Pakistan will announce the first monetary policy of 2025 today, with experts anticipating a further 1% reduction in the policy rate.*

The announcement will follow a meeting of the Monetary Policy Committee (MPC) chaired by Governor of the State Bank, Jameel Ahmad. Experts expect the central bank to lower the policy rate due to a decrease in inflationary pressures.

Currently, the interbank KIBOR rate has fallen to between 11% and 12%. The State Bank has already reduced the policy rate by as much as 9% over the past seven consecutive meetings, bringing the base interest rate to 13%.

Prime Minister Shehbaz Sharif has also hinted at further rate cuts. Meanwhile, representative organizations of the business community have been advocating for a 3% reduction in the policy rate to support economic growth.