SBP announces 150 basis points cut in key policy rate

Karachi: The State Bank of Pakistan (SBP) has slashed the key policy rate by 150 basis points, taking it from 22 per cent to 20.5pc. The rates will be effective from June 11, 2024.

In its statement, the MPC said that while the significant decline in inflation since February was broadly in line with expectations, the May outturn was better than anticipated earlier.

“The Committee assessed that underlying inflationary pressures are also subsiding amidst tight monetary policy stance, supported by fiscal consolidation.

“This is reflected by continued moderation in core inflation and ease in inflation expectations of both consumers and businesses in the latest surveys.