London January 28 2025: The State Bank of Pakistan will cut interest rates more quickly with inflation expected to further ease in January, according to Citigroup Global Markets.
Citi sees another 100bps cut in March, and 50bps in May before pausing, reaching a 10.5% policy rate by June, analysts including Johanna Chua, head of emerging market economics, write in a note
The base case underpinning the monetary policy committee call is a successful IMF review to eventually pave the way for a $1 billion disbursal in 2Q25F.
The State Bank of Pakistan lowered the target rate by 100 basis points to 12%, Governor Jameel Ahmad said in Karachi on Monday
