Pakistan, April 30 -- The State Bank of Pakistan (SBP) will announce its new monetary policy on May 5, 2025. Analysts expect the central bank to cut the key policy rate by 50 basis points, bringing it down to 11.5%. The expected move comes as inflation continues to decline and interest rate cushions remain strong.

Headline inflation dropped to just 0.7% in March, the lowest in around 60 years. It is expected to fall further to 0.45% in April. Meanwhile, average inflation for the fiscal year stands at 4.88%, much lower than last year's 26.22%. These improvements have created space for the SBP to ease its policy stance.

However, core inflation remains higher, with non-food and non-energy inflation projected at 7.72% in April. Moreover, th...