The State Bank of Pakistan (SBP) has announced a 2% reduction in the policy rate, bringing it down to 13%.
According to the SBP, inflation in November stood at 4.9% year-on-year, aligning with expectations. However, inflation expectations among consumers and businesses remain mixed.
The central bank stated that recent economic data points to improved growth prospects. The cautious reduction in the policy rate has helped manage inflationary and external account pressures.
SBP highlighted that the current account remained in surplus for the third consecutive month in October, boosting foreign exchange reserves to $12 billion.
Additionally, the bank noted that declining global commodity prices have reduced the import bill and eased inflationary pressures
