After maintaining a policy rate at all-time high level of 22 percent for almost a year, the Monetary Policy Committee of the State Bank of Pakistan (SBP) has started monetary easing and cut the policy rate by 150bps to 20.5 percent on lower inflation. The cut in the policy rate has been witnessed after a gap of four years, as the previous committee reduced the policy rate by 100 bps to 7 percent in June 2020. Later, the MPC started monetary tightening in Sep 2021 to address the inflation risks and it rose to 22 percent in June 2023. The meeting of the MPC of the SBP was held on Monday at SBP head office and chaired by the Governor SBP Jameel Ahmed. During the meeting, the Committee decided to reduce the policy rate by 150 bps to 20.5 percent, (Business Recorder)
11/6/2024