SBP governor promises gradual rate cuts

State Bank of Pakistan (SBP) Governor Jameel Ahmed has announced that the central bank will reduce the policy rate gradually through a phase-wise approach. Speaking during a visit to the FPCCI on Thursday, the governor highlighted that consulting the FPCCI is crucial for aligning economic policies with the needs of the business community and fostering growth.

The FPCCI president, Atif Ikram Sheikh, urged the central bank to bring the interest rate down to single digits, arguing that the current double-digit rate is unjustifiable given the significant drop in inflation. He highlighted that inflation fell to 4.1% in December 2024, the lowest in years, and called for decisive action to support economic development and revive business confidence.