Interest rate down to 13pc after 200bps cut

Monetary Policy Committee notes inflation outlook susceptible to multiple risks, meeting revenue surplus targets will be uphill task Core inflation ‘sticking’ around 9.7pc-mark, despite aggressive cuts during 2024; real GDP growth in FY25 to remain in 2.5pc-3.5pc range KARACHI: The interest rate is now at 13 per cent after the central bank slashed it by 200 basis points on Monday — in line with what most financial experts foresaw, but still below industry and market expectations. Aggressive and unpre­ce­dented cuts — from 22pc to 13pc, totalling 900bps — were made by the State Bank of Pakis­tan (SBP) in the second half of calendar year 2024 following an exte­nded period where the interest rate remained stable in an effort to rein in inflation. Trade and industry circles, however, were calling for a decline of up to 400-500bps to boost economic growth with cheaper money.