State Bank of Pakistan slashes interest rate from 19.5% to 17.5%
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Loading... - Maya Bobal
- 12 Sep 2024
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The State Bank of Pakistan (SBP) has announced a significant reduction in its policy rate, cutting it by 200 basis points from 19.5% to 17.5%. This change, which will take effect on September 13, 2024, was decided by the Monetary Policy Committee (MPC) following a notable decline in inflation over the past two months.
In a statement released by the central bank, it was highlighted that both headline and core inflation had decreased sharply, exceeding the Committee's earlier expectations.
This faster-than-expected disinflation was attributed largely to delays in implementing planned energy price increases and favorable movements in global oil and food prices.
During its meeting, the MPC recognized the inherent uncertainty surrounding these developments, which necessitated a cautious approach to monetary policy.
The Committee emphasized that the tight monetary policy stance has been crucial in achieving the sustained reduction in inflation observed over the past year.
