The State Bank of Pakistan (SBP) has lowered its benchmark rate by 100 basic points to 11%. The decision, which was announced by the monetary policy committee (MPC) meeting Monday, will take effect from May 6, 2025.

According to the MPC, the rate of rate follows a sharp decline in inflation during March and April, which is largely powered by reduced managed electricity starifers and facilitates food prices.

Core inflation also fell in April, helped by a favorable base and moderate demand.

“This cut is higher than the market’s expectations,” Mohammed Sohail, CEO of Topline Securities told a local media offering, adding that analysts had mostly expected a 50bps reduction or team due to global uncertainties.

Despite the improved inflation path, MPCs recognized ongoing global risks, including uncertainty about trade rares and geopolitical tensions, and emphasized the need to maintain a balanced monetary attitude.

Analysts had been shared prior to the meeting. While Arif Habib Limited expected a 50bps cutting cutting with reference to disinflation and macrostability.

Topline -Service Papers and Other Economists had not predicted any change pointing to IMF conditions and unresolved foreign influxes.

April’s inflation rate amounted to 0.3% years, significantly lower than March 0.7%, while Pakistan’s ongoing account issued a $ 1.2 billion profit in March. SBP’s Forex reserves rose slightly to $ 10.21 billion per year. April 25.

The policy rate was previously held at 12% at the last MPC meeting.

Rupee has since been written off by 0.4%, while international oil prices and local gasoline prices have risen downwards.