SBP expected to keep policy rate unchanged as economic slowdown in the offing

The State Bank of Pakistan is expected to keep the main policy rate unchanged at 15 per cent in its monetary policy announcement scheduled for tomorrow, according to analysts and economists. All seven experts who spoke to Dawn.com said they expected the central bank to maintain rates, with many pointing out that a slowdown in economic activity had begun and inflation, which has been at decades-high level in the past few months, will be trending down. In October, headline inflation clocked in at 26.6pc from a year earlier, reversing the trend witnessed in September when the consumer price index rose 23.2pc, slowing from a four-decade high of 27.3pc in August. The central bank has raised interest rates by 525 basis points this year, with the last hike of 125 bps coming in July. Since then, the SBP has maintained rates in two monetary policy meetings despite no arrest in inflation.