ISLAMABAD State Bank of Pakistan (SBP) in its Monetary Policy Committee (MPC) meeting has decided to reduce policy rate by 250bps to 15.0%.
This cut above market expectations of 200bps.
This is the fourth consecutive cut by Central Bank. In total, SBP has cut the rate by 700bps in last four monetary policy meetings.
Since last MPC meeting, inflation has declined faster than expected and has now reached close to medium-term target range in October 2024.
The tight monetary policy stance continues to play an important role is sustaining the downward trend in inflation. A sharp decline in food inflation, favourable global oil prices and absence of expected adjustment in gas tariffs and PDL rates have accelerated the pace of disinflation in recent months.
