Nazir Siyal

KARACHI: State Bank of Pakistan (SBP) has lowered the key interest rate by 100 basis points (bps), bringing it down to 11% with the change taking effect from May 6, 2025.

Explaining the move, the Monetary Policy Committee said, “Inflation declined sharply during March and April, mainly due to a reduction in administered electricity prices and continued downtrend in food inflation.”

The committee added that the recent drop in core inflation also played a role. “Core inflation also declined in April, primarily reflecting favorable base-effect amidst moderate demand conditions,” it noted.