The State Bank of Pakistan (SBP) announced a one percent reduction in the interest rate on Monday, bringing it down to 19.5 percent. This decision was revealed by SBP Governor Jameel Ahmad during a media briefing after the monetary policy meeting.
Ahmad noted that inflation is gradually decreasing and the country’s economy is on the path to recovery. As a result, the monetary policy committee decided to reduce the interest rate by 100 basis points to support economic growth.
“The reduction in the interest rate reflects our confidence in the current economic trajectory,” Ahmad stated. He added that future projections expect the average inflation rate to stabilize between 23% and 25%, following last year’s rate of 23.4%.
The central bank remains optimistic about further improvements in economic indicators, viewing the rate cut as a measure to bolster economic growth.