Karachi- The State Bank of Pakistan (SBP) has announced a reduction in the interest rate by 1% in the meeting of the Monetary Policy Committee, after which the new interest rate has been increased to 11%. This decision has been taken to reduce inflation and boost economic growth.
According to the Monetary Policy Committee, inflation rates saw a significant decline in March and April, mainly as a result of lower electricity and food prices. Inflation was recorded at 0.3 percent in April, which was lower than expectations.
The State Bank has said that the inflation scenario has further improved compared to previous estimates, however, global trade uncertainty and geopolitical conditions may pose challenges for the economy.
