SBP Cuts Policy Rate Pushes Digital Banking
The governor said that the SBP working on the regulatory form of digital banking and branchless banking.
“Around half the population of Pakistan’s far-flung areas have no accounts in banks,” the central bank governor said. “The digital banking is most necessary given these figures,” he said.
He said the digital banks could empower small and medium enterprises (SMEs).
The SBP on Monday slashed the policy rate by 100 basis points in the first monetary policy of 2025.
“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 of the new policy rate was made by 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 percent in FY2024-25, he added.
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