SBP MPC Cuts Policy Rate to 15% Inflation Trends and Future Outlook
The decision was taken in a Monetary Policy Committee (MPC) meeting of the central bank chaired by SBP Governor Jameel Ahmad.
“At its meeting today, the Monetary Policy Committee (MPC) decided to cut the policy rate by 250 basis points to 15 percent, effective from November 5, 2024. The Committee noted that inflation has declined faster than expected and has reached close to its medium-term target range in October,” a statement issued here read.
The MPC also assessed that the tight monetary policy stance plays an important role in sustaining the downward trend in inflation.
“Moreover, a sharp decline in food inflation, favorable global oil prices, and absence of expected adjustments in gas tariffs and PDL rates have accelerated the pace of disinflation in recent months. Taking into account the inherent risks associated with these factors, the MPC assessed that the near-term inflation may remain volatile before stabilizing within the target range,” it added.
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