State Bank cuts policy rate by 100bps to 7pc

KARACHI (HRNW) The State Bank of Pakistan (SBP) on Thursday slashed its key interest rate by one per cent (100 basis points) to seven per cent in view of improved inflation outlook and domestic economic slowdown.

The decision to cut the policy rate was taken at a meeting of the Monetary Policy Committee (MPC).

The central bank in a statement issued after the meeting said the decision reflected the MPC’s view that the inflation outlook has improved further, while the domestic economic slowdown continues and downside risks to growth have increased.

“Against this backdrop of receding demand-side inflation risks, the priority of monetary policy has appropriately shifted toward supporting growth and employment during these challenging times,” the statement read.

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