The State Bank of Pakistan (SBP) on Monday slashed policy rate by 100 basis points in the first monetary policy of 2025.
“At its meeting today, the Monetary Policy Committee (MPC) decided to cut the policy rate by 100 bps to 12 percent, effective from December 17, 2024,” the SBP said in a statement.
The Monetary Policy Committee (MPC) meeting was chaired by SBP Governor Jameel Ahmad.
The announcement for the new policy rate was made by the SBP Governor Jameel Ahmed in a press conference after the MPC meeting.
The SBP chief said inflation is decreasing in Pakistan gradually and added the inflation dropped to 4.1pc in December 2024.
The inflation rate will remain between 5 to 7 per cent in FY2024-25, he added.
Mr. Jameel further said economic activities are gaining momentum in the country and the current account remained surplus with over $580mln.