Promise and peril of low policy rates
In an unprecedented policy action that has taken international markets and other domestic players by surprise, the State Bank of Pakistan (SBP) has carried one of the most aggressive interest…
Policy rate unchanged
The Monetary Policy Committee (MPC), met under the chairmanship of the Governor State Bank of Pakistan (SBP) on 10 March 2025, and decided to keep the policy rate unchanged at…
MPC clearly in a dilemma about how to respond to policy rate question
The State Bank of Pakistan (SBP) is set to announce its monetary policy decision today. Over the past six reviews, the central bank has slashed interest rates by a cumulative…
Policy rate caution
The State Bank of Pakistan (SBP) and the current economic team of the government of Pakistan must stop hiding behind a veil of overly cautious monetary policies. The latest Monetary…
Policy rate: a cut is likely?
Despite a decline in inflation, overall costs are still growing this year in comparison to prior years. Regarding inflation, let me remind everyone that core inflation is not the benchmark…
Policy rate and inflation
In the 1970s, economists believed that inflation was primarily caused by ‘monetarism’, which is too much money chasing too few goods. They contended that the only way to control inflation…
Policy rate and oil subsidy — I
In its latest Monetary Policy Statement (MPS), released a few days ago, State Bank of Pakistan (SBP) raised policy rate by 150 basis points to 13.75 percent. As per his…
Policy rate and oil subsidy — II
Therefore, such policy increase will likely do a lot of harm to the impact of bottom-up approach by the previous government has adopted since the start of the pandemic. It…
Policy rate cut
The Monetary Policy Committee (MPC) met for the third time in less than one month on 16 April 2020 and reduced the rate to 9 percent - from 13.25 percent…
Policy rate hike-weak rupee can be ‘deadly’ combination
Five global central banks, including State Bank of Pakistan, will be making policy announcements this week. The other four are Bank of Japan (BoJ), Bank of England (BoE), Federal Reserve…
