Great News State Bank announces new monetary policy:

State Bank announces new monetary policy

The State Bank of Pakistan (SBP) recently announced a significant cut in its key interest rate. It cut it by 200 basis points from 19.5% to 17.5%. 

This is the third consecutive rate cut in the past three months, reflecting easing inflationary pressures. Inflation has fallen to single digits for the first time in three years.

Inflation stood at 9.6% in August 2024, down from 12.6% in June. The decision is aimed at supporting economic recovery, especially in the industrial and services sectors, while addressing challenges in the agricultural sector, especially cotton production. 

 SBP also cited improving business confidence and economic indicators such as increased sales of cement and petroleum products. The current account deficit remains low, supported by robust remittance inflows and stable export earnings. 

The SBP expects inflation to continue on a downward trend going forward, but remains cautious about external factors such as adjustments in global oil  and  energy prices.

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