{"id":102083,"date":"2025-04-30T11:25:00","date_gmt":"2025-04-30T06:25:00","guid":{"rendered":"https:\/\/www.zameen.com\/news\/?p=102083"},"modified":"2025-04-29T17:29:53","modified_gmt":"2025-04-29T12:29:53","slug":"sbp-expected-to-cut-key-policy-rate-to-11-5","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/news\/sbp-expected-to-cut-key-policy-rate-to-11-5.html","title":{"rendered":"SBP expected to cut key policy rate by 50bps to 11.5%"},"content":{"rendered":"\n<p>Karachi: The State Bank of Pakistan (SBP) is expected to reduce its key policy rate by 50 basis points to 11.5% in its upcoming Monetary Policy Committee (MPC) meeting scheduled for May 5, 2025, according to a report released by brokerage house Arif Habib Limited (AHL) on Monday.<\/p>\n\n\n\n<p>In its assessment, AHL cited a sustained disinflationary trend and a significant real interest rate cushion as grounds for a measured rate cut. \u201cThe marked decline in inflation stands as the primary catalyst behind our expectation of a policy rate cut,\u201d the report noted.<\/p>\n\n\n\n<p>Read: <a href=\"https:\/\/www.zameen.com\/news\/sbp-reports-32-5-growth-in-remittances.html\" target=\"_blank\" rel=\"noreferrer noopener\">SBP reports 32.5% growth in remittances, totaling USD 24 bn<\/a><\/p>\n\n\n\n<p>Headline inflation dropped sharply to 0.7% year-on-year in March 2025 \u2014 the lowest in six decades \u2014 and is projected to decline further to a historic low of 0.45% in April. For the first 10 months of the fiscal year (10MFY25), average inflation is estimated at 4.88%, compared to 26.22% during the same period last year. The drop has largely been driven by a high base effect and softened food prices.<\/p>\n\n\n\n<p>In its previous meeting held on March 10, the SBP had kept the policy rate unchanged at 12%, while highlighting the downside surprise in February inflation \u2014 largely attributed to declining food and energy prices. However, the central bank also warned of persistent core inflation and potential risks of volatility in commodity prices.<\/p>\n\n\n\n<p>Read: <a href=\"https:\/\/www.zameen.com\/news\/ai-can-boost-banking-access-sbp.html\" target=\"_blank\" rel=\"noreferrer noopener\">AI can improve banking access for women, SMEs, farmers: SBP<\/a><\/p>\n\n\n\n<p>While AHL sees room for monetary easing to support economic activity, it also cautioned that the high base effect could wear off in the coming months, possibly exerting renewed upward pressure on inflation. The May 5 MPC meeting will be closely watched by investors, businesses, and policymakers alike for signals on the central bank\u2019s future policy direction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karachi: The State Bank of Pakistan (SBP) is expected to reduce its key policy rate by 50 basis points to 11.5% in its upcoming Monetary Policy Committee (MPC) meeting scheduled for May 5, 2025, according to a report released by brokerage house Arif Habib Limited (AHL) on Monday. In its assessment, AHL cited a sustained disinflationary trend and a significant real interest rate cushion as grounds for a measured rate cut. \u201cThe marked decline in inflation stands as the primary catalyst behind our expectation of a policy rate cut,\u201d the report noted. Read: SBP reports 32.5% growth in remittances, totaling USD 24 bn Headline inflation dropped sharply to 0.7% year-on-year in March 2025 \u2014 the lowest in six decades \u2014 and is projected to decline further to a historic low of 0.45% in April. For the first 10 months of the fiscal year (10MFY25), average inflation is estimated at 4.88%, compared to 26.22% during the same period last year. The drop has largely been driven by a high base effect and softened food prices. In its previous meeting held on March 10, the SBP had kept the policy rate unchanged at 12%, while highlighting the downside surprise in February inflation&hellip;<\/p>\n","protected":false},"author":18,"featured_media":76277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15015],"tags":[63773,39638,60626,64265,61427,64266,63705,62148,64264,34475,62969,6066,2631],"persona":[],"class_list":{"0":"post-102083","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-legal-taxation","8":"tag-arif-habib-limited","9":"tag-economic-recovery","10":"tag-fiscal-policy","11":"tag-headline-inflation","12":"tag-inflation","13":"tag-interest-rate-cut","14":"tag-macroeconomic-stability","15":"tag-monetary-policy","16":"tag-mpc-meeting","17":"tag-pakistan-economy","18":"tag-policy-rate","19":"tag-sbp","20":"tag-state-bank-of-pakistan","21":"cat-15015-id"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>SBP expected to cut key policy rate to 11.5% - Zameen News<\/title>\n<meta name=\"description\" content=\"The SBP had kept the policy rate unchanged at 12%, while highlighting the downside surprise in February inflation....\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zameen.com\/news\/sbp-expected-to-cut-key-policy-rate-to-11-5.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SBP expected to cut key policy rate to 11.5% - Zameen News\" \/>\n<meta property=\"og:description\" content=\"The SBP had kept the policy rate unchanged at 12%, while highlighting the downside surprise in February inflation....\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zameen.com\/news\/sbp-expected-to-cut-key-policy-rate-to-11-5.html\" \/>\n<meta property=\"og:site_name\" content=\"Pakistan Real Estate News &amp; 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