Karachi May 5 2025: At its meeting today, the Monetary Policy Committee (MPC) decided to cut the policy rate by 100 bps to 11 percent, effective from May 6, 2025.
The Committee noted that inflation declined sharply during March and April, mainly due to a reduction in administered electricity prices and continued downtrend in food inflation. Core inflation also declined in April, primarily reflecting favorable base-effect amidst moderate demand conditions. Overall, the MPC assessed that the inflation outlook has improved further relative to the previous assessment.
At the same time, the Committee viewed that the heightened global uncertainty surrounding trade tariffs and geopolitical developments could pose challenges for the economy. In this backdrop, the MPC emphasized the importance of maintaining a measured monetary policy stance.
