The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will meet on Monday to discuss monetary policy.
During the most recent monetary policy meeting in July 2022, the committee raised the benchmark policy rate by 125 basis points (bps) to 15%. It also linked the interest rates of the Export Finance Scheme (EFS) and the Long-Term Financing Facility (LTFF) to the policy rate and provided a 500-basis-point discount relative to the policy rate to encourage exports.
The majority of economists believe that the future monetary policy, which will be announced on August 22, 2022, will remain unchanged. They claimed that Pakistan’s trade deficit fell by 18 percent year on year and 47 percent month on month during the month of July 22, owing primarily to lower import costs. The economy has recently improved significantly.
