The State Bank of Pakistan (SBP) announced a 100-basis point reduction in its key policy rate, bringing it down to 11%, as decided by the Monetary Policy Committee (MPC) during its meeting on Monday. This move, which aligns with market expectations of a rate cut amid easing inflation, aims to support economic growth while maintaining price stability. The Monetary Policy Committee highlighted a sharp decline in inflation during March and April, attributed to reduced administered electricity prices and a continued downtrend in food inflation. Core inflation also fell to 8.0 percent in April, reflecting a favorable base effect and moderate demand. The committee assessed that the inflation outlook has improved, with expectations for it to stabilize within the target range of 5–7 percent in the coming months.
