ISLAMABAD: The State Bank of Pakistan’s Monetary Policy Committee (MPC) is scheduled to meet on Monday, May 5, 2025, to set the policy rate for the next two months, with growing speculation that an interest rate cut may be on the cards.
The central bank confirmed the upcoming meeting in an official statement, adding that a detailed monetary policy announcement will follow the same day via press release.
Economic analysts believe the central bank has sufficient room to reduce the policy rate by as much as 200 basis points by the end of 2025. This outlook has increased expectations that a rate cut may be announced in Monday’s session.
Market sentiment also points in that direction. According to a recent survey of financial institutions, most participants expect a cut of at least 50 basis points, while some are forecasting a reduction of up to 100 basis points.
The meeting comes at a time when easing inflationary pressures and improving macroeconomic indicators may give the SBP flexibility to stimulate economic growth through lower borrowing costs.
