Hike or hold: SBP to announce policy rate today

The State Bank of Pakistan’s Monetary Policy Committee is due to meet on Monday, October 26, to decide whether to change the policy rate. At its previous meeting on September 14, the committee kept the rate at 11.5%, while August headline inflation rose to 11.1% from 9.2% in July.

Business Recorder reported that views ahead of the decision are split. Topline Securities’ poll found 61% of respondents expect a rate increase, with 54% anticipating a 50-basis-point rise and 7% a 100-basis-point increase; 39% foresee no change. Topline and Foundation Securities each expect a 50-basis-point increase, while the Pakistan Institute of Development Economics favours holding the rate, citing insufficient evidence of broad-based inflation pressures.