ISLAMABAD: The State Bank of Pakistan (SBP) has released the advance calendar for its Monetary Policy Committee (MPC) meetings scheduled for the first half of 2025.

The central bank plans to hold four MPC meetings from January to June. The first meeting is scheduled for January 27, followed by the second on March 10. The third meeting will take place on May 5, with the final one in the first half of the year set for June 16. These meetings are critical for setting the direction of Pakistan's monetary policy and for decisions that affect key interest rates and economic stability.

The SBP's last MPC meeting, held on December 16, 2024, resulted in a significant reduction of the policy rate by 200 basis points, bringing it down to 13%. This was the fifth consecutive rate cut since June 2024, when the rate stood at 22%. Following the recent cut, market experts predict further policy rate reductions, given the lower Consumer Price Index (CPI)-based inflation rate, which stood at 4.1% in December. Arif Habib Limited (AHL) forecasts a 100-basis-point cut in the upcoming January meeting, potentially bringing the policy rate down to 12%. This would be seen as a response to favorable inflation trends and the evolving economic landscape.The MPC plays a pivotal role in shaping the monetary policy of Pakistan. It is empowered under Section 9E of the SBP Act of 1956 to decide on monetary policy, including setting key interest rates, managing the supply of reserves, and addressing other monetary objectives. Additionally, the committee is responsible for issuing the monetary policy statement and implementing relevant measures, ensuring that the country's financial system remains stable.

The MPC's decisions are crucial for the economy, influencing inflation, economic growth, and the overall financial environment in Pakistan. The committee also carries out any other functions assigned by law. , reinforcing its central role in the nation's monetary management.