The South Asian nation has embarked on a difficult path to economic recovery under a caretaker government after a $3 billion loan programme was approved by the IMF in July that helped to avert a sovereign debt default, but with conditions that complicated efforts to curb inflation.The median estimate in a Reuters poll of 15 analysts predicted no change in rates on Monday. Two of the 15 analysts expected a rate cut of 50 and 100 basis points each.
Inflation has been in double digits since November 2021. The country targeted inflation at 21 per cent for the current fiscal year, but it averaged 29 per cent during the first quarter. SBP kept its key interest rate unchanged at 22 per cent at its meeting in September, surprising analysts who had been expecting it to increase rates by at least 150 basis points.