Monetary Policy Survey – Analysts Community Suggest No change


The State Bank of Pakistan is scheduled to announce the Monetary Policy rate on Tuesday i.e. January 28, 2020. The policy rate is expected to remain unchanged.

In the last monetary policy announcement on November 22, 2019, the SBP kept the Policy Rate unchanged at 13.25% owing to unchanged inflation numbers.

Inflation in December 2019 stood at 12.63% and is expected to intensify up to 13.7% in January 2020 (as per the projections of various research houses). Going forward, CPI readings might remain inflated as the revision in utility tariffs have not come into effect, furthermore, if the proposed hike in gas prices are implemented in the coming month, it would trigger an unstoppable inflationary spiral.

In a survey on the possible decision to be taken by the State Bank of Pakistan (SBP) Monetary Policy Committee, all the members have said no change to the interest rate.

All brokerage and Analysts have predicted that the policy rate will remain the same i.e. 13.25%.In fact all 29 research houses surveyed on policy rate expectations that the SBP would maintain the status quo on the policy rate.