S&P Global sees more rate cuts

Stan­d­a­­rd & Poor’s Global Market Intelligence on Tuesday fo­­recast further rate cuts by the State Bank of Pakistan (SBP) during the current fiscal year following a 100bps reduction to 11pc by the Monetary Policy Committee on Monday. In a brief analysis, S&P Global Market Intelligence said the SBP delivered a larger-than-expected rate cut to 11pc as headline inflation bottomed out. “Given improved inflation dynamics and stronger external balances, the SBP now has space to ease further, and S&P Global Mar­ket Intelligence projects an­­other 100bps cut by the end of 2025,” it said, adding, however, that the central bank was expected to proceed cautiously due to global volatility, including the impact of US tariffs and softening external demand.