Pakistan’s central bank will review its key interest rate on June 16, the State Bank of Pakistan (SBP) said in a statement on Thursday.
The decision will be taken by the Monetary Policy Committee (MPC) and announced via a press release the same day.
The upcoming meeting follows a 100 basis point cut in May, which brought the policy rate down to 11 per cent, its lowest level since March 2022. That marked a cumulative reduction of 1,100 basis points since June last year, when the benchmark rate peaked at 22 per cent.
The May cut came amid signs of easing inflation. The MPC had said at the time that headline inflation had dropped significantly in March and April, driven by lower electricity prices and a continued decline in food costs. Core inflation also fell in April, largely due to base effects and subdued demand.
However, inflationary pressure has since shown signs of a rebound. Consumer prices rose 3.5 per cent in May compared to a year earlier, up sharply from 0.3 per cent in April, according to data from the Pakistan Bureau of Statistics. Still, the latest figure remains well below the 11.8 per cent recorded in May 2024.
The MPC had previously flagged global trade tensions and geopolitical risks as potential headwinds to economic stability. In its May statement, the Committee noted the need to maintain a cautious monetary stance in light of these uncertainties.
