PSX Falls Over 1,000 Points as Investors Brace for Interest Rate Hike
PSX Market: The KSE-100 Index declines ahead of the SBP monetary policy decision.
The Pakistan Stock Exchange (PSX) opened in negative territory on Monday as investors weighed the possibility of an interest rate hike by the State Bank of Pakistan (SBP).
During early trading, the benchmark KSE-100 Index fell by more than 1,000 points to 161,250 points, reflecting continued selling pressure.
The decline followed a weak session on the previous trading day. The KSE-100 Index had lost 1,549 points to close at 162,374 points.
SBP Monetary Policy Decision in Focus
Investors remained cautious ahead of the SBP Monetary Policy Committee’s meeting on Monday. The committee is scheduled to review economic conditions and the inflation outlook before announcing its policy decision.
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Market uncertainty has increased amid concerns about inflation, regional tensions and pressure on the Pakistani rupee.
Analysts Expect Possible Rate Increase
Economists and market analysts expect the central bank to raise its key policy rate by up to 50 basis points.
If the SBP implements the anticipated increase, the policy rate could rise from 11.5% to 12%. However, the final decision will depend on the central bank’s assessment of economic conditions and inflation risks.
Investors are closely monitoring the announcement for signals about borrowing costs and the market’s near-term direction.
