Monetary policy: SBP cuts interest rate by a significant 200bps to 9%
Revision comes due to deteriorating global and domestic outlookKARACHI: In yet another emergency meeting, the State Bank of Pakistan has slashed the interest rate by a significant 200 basis points to 9% on Thursday. “Since the last Monetary Policy Committee (MPC) meeting, the global and domestic outlook has further deteriorated,” the central bank said in a statement. In addition, global oil prices have plummeted further with futures markets suggesting low prices will persist. On the inflation front, both the March CPI out-turn and more recent weekly SPI releases in April also show a marked reduction in inflation momentum. “In light of this reduction in growth and inflation expectations, the MPC decided at its emergency meeting today, to cut the policy rate by a further 200 basis points to 9%,” the statement said.
Source: The Express Tribune April 16, 2020 13:18 UTC
