Pakistan Economy: SBP reduces CRR by 1%; keeps benchmark rate unchanged – By Insight Research
- In yesterday’s MPC meeting, the central bank maintained the policy rate, contrary to market expectations of a 50–75bps cut, as reflected in recent treasury auctions and secondary market yields. The decision surprised many, amid widespread speculation around single-digit policy rate. Nevertheless, SBP opted for a prudent stance, realizing emerging risks from a growth in imports at a time when geopolitical tensions remain elevated.
- However, to support the economy which continues to face challenges in sustaining a recovery and reviving growth, central bank announced a reduction in the Cash Reserve Requirement (CRR) for banks to 5% from 6% on a fortnightly average basis, while also lowering the daily minimum maintenance requirement to 3% from 4%.