Current projections for 2026 rate cuts appear conservative. However, the landscape for monetary policy is dynamic. Significant shifts in Federal Reserve leadership could introduce a more dovish approach. Should a more dovish stance prevail at the Fed, such a change would likely accelerate the pace of interest rate reductions. This could lead to a higher number of rate cuts than currently anticipated for 2026. Keep an eye on key economic indicators and any signals from central bank officials for potential shifts. $ENSO $NOM $BULLA
The State Bank of Pakistan (SBP) is expected to keep the policy rate unchanged at 11% in its upcoming meeting, according to a Reuters poll. Analysts believe the central bank will maintain a cautious approach due to persistent inflation risks and external pressures. The IMF has warned against premature easing, emphasizing the need for monetary policy to remain "appropriately tight" to anchor expectations and support price stability.
