The State Bank of Pakistan (SBP) on Monday announced a reduction in interest rates in its final monetary policy decision of the year. The bank has opted to shift its long-standing practice of maintaining high interest rates, lowering them by 50 basis points.
As a result, the interest rate has decreased from 11 per cent to 10.5 per cent. This change is expected to reduce borrowing costs for the business and industrial sectors.
It is important to note that the State Bank had kept the interest rate at 11 per cent for four consecutive reviews. Business and industrial communities have long been advocating for a reduction in interest rates, arguing for a decrease due to the decline in inflation.
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