Posted 3/13/2024, 3:18:30 AM
Experts Split onLikelihood of Interest Rate Cut in Pakistan's UpcomingMonetary Policy
- Market is divided on whether SBP will cut interest rates on March 18th monetary policy announcement
- 53% expect rates to remain unchanged, while 47% forecast a cut due to declining inflation
- Of those expecting a cut, most foresee 100bps reduction, while some see less than 100bps or 200bps
- Decision may be influenced by ongoing IMF negotiations and fund's advice to maintain tight monetary policy
- Lower headline and core inflation trajectories could support a data-driven decision to cut rates