Interest rate cut by 75bps to 12.5% after three years

The State Bank of Pakistan cut its key interest rate by 75 basis points to 12.50% on Tuesday. The central bank cited deceleration in domestic food prices as the reason for cutting the policy rate. SBP said that the outlook on the headline inflation, a measure of the total inflation including commodities such as food and energy prices, remains within its earlier forecast range of 11% to 12%

Economic Coordination Committee member Dr Farrukh Saleem said the consensus prediction is a cut of around 75 bps but it should ideally cut over 200 bps in his view.

Source: Samaa