SBP cuts interest rate by 100bps to 11pc

The State Bank of Pakistan (SBP) announced on Monday that it has decided to cut the policy rate to 11 per cent, amid trade and industry sectors advocating for a significant cut.

The central bank’s policy rate, after being slashed by 1,000bps from 22pc since June 2024 in six intervals, previously stood at 12pc.

April inflation stood at a low of 0.3pc, largely due to a high base a year ago. The reduction is also primarily attributed to lower prices of key food staples such as wheat and its derivatives...