KARACHI The State Bank of Pakistan will announce its second monetary policy statement for the next two months (October-November) of the current financial year on Wednesday (today). It is not yet clear what decisions the SBP Central Board of Directors under the chairmanship of new Governor Shahid Hafiz Kardar, is going to take at the meeting to be held at the premises of SBP today. However, it is obvious that the new monetary policy statement will be issued in very changed and difficult circumstances mainly because of heavy damages and losses to the economy due to recent floods in certain parts of the country. Many economists and analysts rule out further tightening of monetary policy at least for now and assume that the discount rate would remain unchanged at 13 percent owing to ineffectiveness of the SBP in curtailing aggregate demand. In addition, it could not transmit properly to maintain price stability during the past two months of the prevalent fiscal year. However, the threat of higher inflation due to floods, international commodity price hikes and higher fiscal deficits, is clearly indicating the balance of risk towards the need of a hawkish monetary stance. Therefore, a 50-bps raise in the discount rate is being assumed by the analysts and market sources on account of IMFs pressure on the Government in order to curtail the growth in economy.