The State Bank of Pakistan (SBP) will announce its second monetary policy of the year on Monday, March 10 as the Monetary Policy Committee (MPC) convenes to review key economic indicators and fiscal conditions.

The MPC will assess the overall financial situation, sectoral data, and major developments since the last policy announcement before making its decision, which will be communicated through a Monetary Policy Statement.

Experts anticipate that the SBP may cut the interest rate by one to two percent, given that inflation has dropped to its lowest level.

In its previous meeting on January 27, 2025, the MPC had reduced the policy rate by 100 basis points to 12 percent, citing a downward trend in inflation and gradual economic improvement. However, it had also expressed concerns over potential inflationary pressures and global economic uncertainties.

The upcoming decision is expected to shape Pakistan’s economic outlook, influencing borrowing costs, investment trends, and overall financial stability.