A meeting of the State Bank of Pakistan’s Monetary Policy Committee will take place on Monday, with sources indicating that a decrease in the policy rate could be on the cards.

Reports have indicated that the the interest rate could be decreased by 100 base points in view of improving economic indicators.

The interest rate is currently set at a historic-high of 22%, which was fixed in an off-schedule meeting of the MPC in June. as Pakistan strove to control record-high inflation and tried to complete its bailout program with the International Monetary Fund.

However, in the face of improving exchange rate and a slowdown in inflation, the rate could be decreased to allow for more economic activity.