Pakistan cuts rates to 11%
Central bank expects inflation to rise to 5–7% target level over coming months
Pakistan’s central bank cut its policy rate by 100 basis points to 11% yesterday (May 5) as inflation continues to fall.
The State Bank of Pakistan (SBP) said the sharp decline in inflation in March and April had enabled it to relax its monetary policy stance. Headline inflation fell to 0.3% last month, compared with 0.7% in March. Core inflation dropped to 8% year on year in April after hovering at around 9% over the previous few months.
The central bank said a decline in wheat prices, thanks to
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