Pakistan, May 6 -- The Pakistan Stock Exchange (PSX) rallied strongly on Tuesday as investors welcomed a larger-than-expected interest rate cut by the State Bank of Pakistan (SBP). The benchmark KSE-100 Index soared nearly 685 points intraday, touching 114,787.14 before settling slightly lower in the afternoon session. This marked a 0.6% rise as traders responded positively to the monetary policy shift.
The SBP's Monetary Policy Committee announced a 100 basis point reduction, bringing the key policy rate down to 11%. Most analysts had expected a smaller 50bps cut, making the central bank's move a positive surprise for markets. Analysts said the easing signals growing confidence in inflation control and a bid to support economic growth.
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