The State Bank of Pakistan (SBP) announced on Monday that it had decided to cut the interest rate by 100 basis points (bps) to 19.5 per cent from the previous rate of 20.5pc.
In a statement, SBP Governor Jameel Ahmeed said the central bank’s Monetary Policy Committee (MPC) met earlier today and reviewed the current economic developments, highlighting inflation had declined from a record-high of 38pc in May to 12.6 last month.
“Going forward, they also reviewed the assessments,” the statement added.
Previously, the headline inflation for June clocked in at 12.6pc on year-on- year, according to data from the Pakistan Bureau of Statistics (PBS).
Earlier, market participants had widely anticipated a rate cut given June’s inflation rate of 12.6pc, significantly lower than the interest rate of 20.5pc, though opinions had varied on the extent of the reduction.
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