KARACHI: The SBP’s Monetary Policy Committee during a rendezvous held here on Monday (27th Jan, 2025) has decided to cut key policy rate by 100 basis points (bps) to 12 percent.
It is pertinent to mention here that since June last year SBP has slashed the policy rate by one thousand bps (22pc in June, 2024 to 12pc in January, 2025).
Monetary Policy Committee noted that inflation continued to trend downward in line with expectations, reaching 4.1pc year on year in December: “This trend is driven by moderate domestic demand conditions and supportive supply-side dynamics, amidst favourable base effect...…real GDP growth turned out lower than its expectations;
“… the current account remained in surplus in December 2024; though the SBP’s FX reserves declined amidst low financial inflows and high debt repayments; despite a substantial increase in December, tax revenues remained below target; global oil prices have exhibited heightened volatility over the past few weeks.”
Newspakistan.tv
