The State Bank of Pakistan (SBP) announced its monetary policy statement today (September 12, 2024) decreasing the policy rate by 200bps to 17.5%.

Following the announcement, the SBP Governor made the following remarks in the analyst briefing:

The SBP’s policy rate decision is influenced by a greater than expected decline in inflation and favorable trends in global oil and food prices. However, given the uncertain nature of these developments, the committee has adopted a cautious stance.

Real interest rates remain sufficiently positive to achieve the SBP’s medium-term inflation target of up to 7%.

The SBP........

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