The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is preparing to announce the updated policy rate.

The central bank will reveal the interest rate for the next two months, though it remains uncertain whether the rate will stay the same or be reduced, as stakeholders expect.

Experts believe the policy rate will be lowered to further boost business activities in the country. A notable decline in inflation beyond expectations could lead to a seventh consecutive interest rate cut.

In its previous six sessions, the MPC had reduced the policy rate by 10 percent. In January 2025, the rate was lowered by 1 percent to 12%.

In January, the State Bank of Pakistan (SBP) announced a 100 basis point (bps) cut in the key policy rate, bringing it down from 13% to 12%, aligning with the expectations of the business community.

This reduction follows a 1,000 bps cut from 22% since June 2024.

SBP Governor stressed that the decision was made after careful consideration. "While inflation is expected to decrease next month (February), core inflation continues to be a significant concern," he stated.