KARACHI: The State Bank of Pakistan (SBP) on Monday reduced its key interest rate by 100 basis points, bringing it down to 11% as inflation has shown a clear decline over the past two months, beating the market consensus of a rate hold. 

The decision was made at the Monetary Policy Committee’s meeting on Monday and will take effect from May 6, 2025.

“Inflation declined sharply during March and April, mainly due to a reduction in administered electricity prices and continued downtrend in food inflation,” the committee said in a statement.

It added that core inflation, which excludes food and energy prices, also came down last month. “Core inflation also declined in April, primarily reflecting favorable base-effect amidst moderate demand conditions,” the SBP noted.

This is a developing story and is being added with more details.