Markets change stance and believe SBP to maintain the status quo for interest rates on meeting on July 29

Post author:Siddiqi
Post published:July 26, 2024
Post category:PSX
Reading time:1 mins read

The State Bank of Pakistan (SBP) will announce Monetary Policy on July 29 in the Monetary Policy Committee (MPC) meeting. The MPC will meet on Monday, July 29 to decide about the Monetary Policy, a press release issued by SBP said.

Given the re-emergence of strong inflationary pressures in the near term, we expect SBP to adopt a wait-and-see approach in the upcoming MPC meeting.
Successful unlocking of the IMF program and contractionary fiscal policies has improved the external account and PkR stability, a key factor for SBP in adopting aggressive monetary easing.
We expect SBP to cut the policy rate by 550bps to 15% by the end of FY25, with most of the easing in 1HFY25.
We expect sectors benefiting from monetary easing and structural reforms to remain in the limelight.

Our top picks include OGDC, PPL, MARI, MCB, UBL, MEBL, FFC, LUCK, MLCF, FCCL and INDU.

Courtesy – AKD Research