SBP reduces interest rate by 150bps to 20.5% after four years

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SBP reduces interest rate by 150bps to 20.5% after four years
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SBP on Monday reduced its key interest rate by 150 basis points, marking its first rate cut in almost four years

Gold Rate in Pakistan Today: Bullion Market Opens Week for FlatKARACHI: The State Bank of Pakistan on Monday reduced its key interest rate by 150 basis points, marking its first rate cut in almost four years, in an effort to stimulate growth amid a sharp decline in retail inflation.

The Committee noted that underlying inflationary pressures are diminishing due to a tight monetary policy stance and fiscal consolidation. This is the first time in four years, since June 25, 2020, that the SBP has begun monetary easing. The central bank last adjusted rates in an emergency meeting in late June last year, raising them by 100 basis points to a record high of 22%.

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