SBP to hold first monetary policy meeting of 2026 on Jan 26
Business
The survey found that 56 per cent of participants anticipate a 50 basis points cut in the policy rate.
KARACHI (Dunya News) - A large majority of market participants expect the State Bank of Pakistan (SBP) to cut interest rates at its first Monetary Policy Committee (MPC) meeting of 2026, according to a Monetary Policy Survey conducted by a local research firm.
According to a survey, around 80 per cent of respondents expect the central bank to reduce interest rates further in the upcoming monetary policy.
The survey found that 56 per cent of participants anticipate a 50 basis points cut in the policy rate, while 15 per cent believe the SBP may opt for a one percentage point reduction. Meanwhile, 20 per cent of respondents expect the central bank to keep the interest rate unchanged, and 5 per cent foresee a 25 basis points cut.
Only 3 per cent of survey participants expect a 75 basis points reduction in the policy rate.
The report recalled that the Monetary Policy Committee (MPC) had reduced the policy rate by 50 basis points on December 15, setting the stage for further easing.
Looking ahead, 49 per cent of respondents expect the policy rate to remain at 10 per cent until June 2026, while 46 per cent believe it could fall below 10 per cent by June.
The survey also projected that continued improvement in the rupee’s value, rising remittances, and declining inflation could push the policy rate below 10.5 per cent in the coming months.
