SBP defies market expectations with 50bps rate cut

The State Bank of Pakistan (SBP) on Monday slashed the key policy rate by 50 basis points to 10.5% in a surprise move despite food-led inflation pressures and external considerations. In the last four monetary policy meetings, the central bank had observed the status quo. The last cut of 100 bps was announced after the May 5 meeting, reducing the policy rate to 11%.