SBP Reduces the Interest Rate by 100 Basis Points

SBP Reduces the Interest Rate by 100 Basis Points

Economic data shared by Jameel Ahmad the State Bank of Pakistan (SBP) Governor led to a 100 basis points policy rate decrease effective from 17 December 2024 and gradually lowering the rate to 12%. The year 2025 MPC assembly met under Governor Jameel Ahmad’s leadership before the SBP Governor made public this decision through morning news conferences.

ARY News reported supportive economic information to their viewers following Governor Ahmad’s news segment. During his government broadcast the Governor reported that December inflation reached 4.1% for 2024. The central bank forecasts that inflation levels next year will span from 5 to 7 percent. Throughout his presentation Governor Ahmad announced another policy reduction which amounted to 1000 basis points while continuing the present monetary easing framework spanning eight consecutive policy actions.

Governor Ahmad discussed data showing improved economic performance including $16.19 billion in foreign reserves and a $580 million surplus in the current account balance. The recovery of economic performance alongside its strengthening foundation for development requires this monetary ease in Pakistan’s economic landscape.

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