SBP catches markets off guard with cut
State Bank of Pakistan’s MPC votes for rate cut after being split in April
The State Bank of Pakistan (SBP) cut its policy rate on May 21 - surprising markets after a knife-edge decision in April tipped the other way.
The 25 basis point cut came despite the seventh consecutive rise month of rising inflation, bringing annual CPI inflation to 4.2% in April.
Although this is below the 6% target, the central bank says inflation is "likely to attain a higher plateau" in the 2017 financial year, which begins in July. Seasonal food price rises and the fading of base effects
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