LAHORE MIRROR –The State Bank’s of Pakistan (SBP) announced on Thursday that it had decided to cut its key policy rate by 200 basis points (bps) to 17.5 per cent from 19.5pc amid demands for a major rate cut.
“The Monetary Policy Committee (MPC) decided to reduce the policy rate by 200 bps to 17.5 percent in its meeting today,” a statement released by the SBP read, adding that it took into “account various factors impacting the inflation outlook”.
According to the statement, the MPC “assessed the real interest rate to still be adequately positive to bring inflation down to the medium-term target” of 5 to 7 per cent and help ensure macroeconomic stability.
This was the SBP’s third successive reduction in the interest rate after a 150bps reduction in June and another 100bps cut at the end of July. Back in April 2020 during the pandemic, the SBP had cut the rate by 200bps.
