State Bank to announce monetary policy on 27th

KARACHI: The Monetary Policy Committee of the State Bank of Pakistan (SBP) will meet on Tuesday, July 27, 2021, at the SBP Karachi to decide about the monetary policy, a statement said.

State Bank of Pakistan Governor Dr Reza Baqir will address a press conference on the same day after the meeting, it added.

Meanwhile, the financial market participants are expecting the key policy rate to remain the same in the upcoming monetary policy announcement.

In a poll conducted by Topline Research, around 89 per cent participants expect no change in the policy rate in July 2021, compared with 73 per cent in the previous poll.

However, it shows that around 7 per cent of the participants expect an increase of 25 basis points in the policy rate, while 4 per cent anticipate an increase of 50 basis points.

None of the participants expected a cut in the policy rate this time, compared with 12 per cent, which were expecting a reduction in the previous poll.

In total, 64 per cent of the participants expect an increase in the policy rate in 2021.

Around 51 per cent of the participants are expecting an increase of 50 basis points during 2021, while 13 per cent of the participants are expecting a rise of 100 basis points during the year.

The majority of the participants, i.e., around 57 per cent expect the rupee/dollar between 160 and 165 by the end of 2021, while 37 per cent expect the rupee/dollar to be between 165 and 170.

In its last monetary policy statement on May 28, 2021, the central bank had maintained the policy rate at 7 per cent.