Karachi: The State Bank of Pakistan (SBP) on Monday diminished interests rate by one percent as it announced the monetary policy.
The Monetary Policy Committee of the SBP met today where it has decided to lower down policy rate from 12 to 11 while it will be effective from tomorrow May 6.
The Monetary Policy Committee has decided to reduce the policy rate by 100 bps to 11%.
According to a notification issued by the SBP today, the Monetary Policy Committee (MPC) decided to cut the interest rate, noting that inflation in April turned out to be lower than expected, mainly due to a drop in prices of perishable food items and electricity and fuel charges.
The committee added that the recent drop in core inflation also played a role. “Core inflation also declined in April, primarily reflecting favorable base-effect amidst moderate demand conditions,” it noted.
The SBP’s MPC met today to set the key interest rate for the next two months.
