The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) is scheduled to meet on Monday (today).

In a statement by SBP, the committee will decide the country’s monetary policy for the next two months during this session.

The committee will review the policy rate, with analysts anticipating a potential cut of 50 to 100 basis points.

The central bank’s current interest rate stands at 12 percent, following a cumulative reduction of 10 percent earlier this year. Meanwhile, inflation saw a slight uptick of 0.3 percent in April.

Economists believe the central bank still has room to lower the interest rate by up to 200 basis points by the end of 2025, increasing expectations of a rate cut in today’s MPC meeting.

The SBP is expected to lower its key policy rate by 50 basis points to 11.5%, according to a report by brokerage firm Arif Habib Limited (AHL).

In its previous meeting on March 10, the central bank kept the policy rate unchanged at 12%.

Economic analysts believe the central bank has room to reduce the interest rate by up to 200 basis points by the end of 2025, increasing the chances of a rate cut in the upcoming monetary policy meeting.

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