Pakistan's Monetary Policy: A New Dawn with Rate Cuts

Pakistan's central bank has reduced its key policy rate by 100 basis points to 12% due to improved economic indicators, including positive remittance trends and manageable inflation. Despite various cuts, the business community seeks further reductions to stimulate economic growth.

In a significant development, Pakistan's central bank announced a reduction in its key policy rate by 100 basis points, bringing it down to 12% from the earlier rate of 13%.

The Governor of the State Bank of Pakistan, Jameel Ahmed, disclosed that the decision was influenced by an optimistic inflation outlook and other economic advancements.

While celebrating a positive trend in remittances and maintaining core inflation under control, Ahmed emphasized the necessity of achieving the reserve goal of $13 billion by June.

(With inputs from agencies.)