KARACHI: The State Bank will announce the monetary policy on Sept 12.
In the last monetary policy, the State Bank kept the interest rate unchanged. The target rate is 6.5 per cent while the upper ceiling is 7pc.
Analysts believe that low inflation has created room for further cut in the policy interest rate, but they also predict that State Bank would prefer keeping the rate unchanged.
Since November 2014, the interest rate has been slashed by 300 basis points but SBP opted not to cut the rate further despite falling inflation.