SBP Likely to Keep Policy Rate Unchanged Amid Gulf Uncertainty, Oil Price Surge

SBP Likely to Keep Policy Rate Unchanged Amid Gulf Uncertainty, Oil Price Surge

The State Bank of Pakistan is anticipated to hold its policy interest rate at 11.5% during Monday's monetary policy meeting. This decision comes as policymakers navigate heightened uncertainty from the Gulf war, which has pushed global oil prices above $100 per barrel, intensifying inflationary pressures. Analysts believe the SBP is prioritizing macroeconomic stability over growth, despite calls for rate cuts, to manage inflation within the 7-8% range for FY27. An unchanged rate could signal continued economic caution, potentially supporting the PKR's stability but offering limited immediate impetus for gold price movements in Pakistan.

بحوالہ / Source: www.dawn.com