SBP may leave rate untouched today

Pakistan’s central bank is expected to hold its key rate steady at a fourth straight policy meeting on Tuesday, with inflation forecast to start easing in coming months paving the way for rate cuts to boost the economy, analysts said. The country has embarked on a difficult path to economic recovery under a caretaker government after a $3 billion loan programme was approved by the IMF in July that helped avert a sovereign debt default, but contained conditions that complicated efforts to curb inflation. The SBP policy rate was raised to an all-time high of 22 per cent in June and has stayed unchanged for the last three review meetings. The median estimate in a Reuters poll of 12 analysts predicts no change on Tuesday, with one analyst calling for a 100bps cut.