SBP cuts key policy rate by 250bps to 15pc

The State Bank of Pakistan (SBP) announced on Monday that it had decided to cut its key policy rate by 250 basis points (bps) to 15 per cent from 17.5pc amid demands for a major rate cut. “At its meeting today, the Monetary Policy Committee (MPC) decided to cut the policy rate by 250 basis points to 15 per cent, effective from November 5, 2024,” the SPB said in a statement, adding that the Committee noted that inflation had declined “faster than expected and has reached close to its medium-term target range in October”. It highlighted that a “sharp decline in food inflation, favourable global oil prices and absence of expected adjustments in gas tariffs and PDL rates” accelerated the pace of disinflation recently.