KARACHI: State Bank of Pakistan (SBP) will announce monetary policy on Friday, November 22, 2019 for next two months, said a statement on Monday.
The SBP kept the policy rate unchanged at 13.25 percent in its monetary policy announcement on September 16, 2019. In the previous monetary policy, the SBP noted two key developments since the last MPC meeting.
First, the interbank foreign exchange market had adjusted relatively well to the introduction of the market-based exchange rate system. The initial volatility and associated uncertainty in the exchange market had subsided.
Reflecting these improved sentiments and continued adjustment in the current account, the rupee had strengthened modestly against the US dollar since the last MPC, unlike its previous trend.
Second, on the external front, the US Fed, as anticipated, reduced its policy rate by 25 basis points (bps), followed by policy rate cuts by other major central banks around the world.
This would help in lowering pressures on emerging markets’ currencies and potentially increase financial inflows.