Central bank slashes key interest rate by 1pc

(Web Desk): The State Bank of Pakistan (SBP) has cut its key interest rate by 100 basis points, bringing it down to 11%.

The new rate will take effect from May 6, 2025.

According to the Monetary Policy Committee, the decision was made due to a sharp fall in inflation during March and April.

This drop was mainly caused by lower government-set electricity prices and falling food prices. The committee also said that core inflation dropped in April, helped by a favorable base effect and moderate demand in the economy.