SBP Cuts Interest Rate Again to Combat Uncertainty Amid Coronavirus Pandemic

The State Bank of Pakistan has decided to cut the policy rate by a further 150 basis points to 11 percent in a bid to combat growing uncertainty amid the coronavirus pandemic.

The Monetary Policy Committee (MPC) noted considerable uncertainty about how the Coronavirus outbreak would impact the global economy and Pakistan.

1/ MPC has decided to cut the policy rate by a further 150 basis points to 11 percent.
It noted considerable uncertainty about how the Coronavirus outbreak would impact the global economy and Pakistan.

— SBP (@StateBank_Pak) March 24, 2020

The central bank, on twitter, announced that substantial new information on global and domestic developments has become available since the last MPC meeting. The developments that were discussed during the meeting imply that the outlook for growth and inflation in Pakistan is likely to be revised down further.

“The global economy has been hit hard by the coronavirus, with the pandemic causing several businesses, including restaurants, hotels, airlines and manufacturing businesses to record losses in billions,” the SBP said in a press release.

This is a developing story and will be updated as more information becomes available.