Financial experts said that the prospects of the interest rate falling into single digits in Pakistan appear remote at present, with the future course of the policy rate tied to the global war situation and fluctuations in oil prices.
Uncertainty prevails in financial circles regarding the State Bank of Pakistan’s (SBP) forthcoming monetary policy, with debate centred on whether the interest rate will be raised or maintained.
It is pertinent that the SBP this month decided to keep the interest rate unchanged at 10.5 per cent. However, the decision of the 10-member Monetary Policy Committee was not unanimous.
According to the central bank, two members voted in favour of a 0.5 per cent increase in the interest rate, while eight supported maintaining the rate.
The next meeting of the Monetary Policy Committee has been convened for April 27, which is being regarded as highly significant in view of the prevailing economic conditions.
Meanwhile, speculation has also gathered pace in financial circles that the committee’s meeting may be called ahead of the scheduled date.
