SBP’s Surprise Rate Cut: What the Market Completely Missed

Everyone expected the State Bank of Pakistan to hold interest rates steady.Instead, SBP surprised the market with a 50 basis points rate cut, bringing the policy rate down to 10.5%.So what changed?

In this video, we break down why SBP cut rates despite market expectations, using insights directly from the Monetary Policy Statement. From inflation trends and real interest rates to growth signals, external pressures, and fiscal risks — this explainer walks you through the real logic behind SBP’s decision.Was this a calculated move or a risky bet?Is Pakistan entering a new easing cycle — or is SBP still playing it safe?

Watch till the end to understand:

Why inflation gave SBP confidence

How growth and industry data influenced the decision

What risks still worry policymakers

And why this rate cut is not as aggressive as it looks

If you care about Pakistan’s economy, interest rates, inflation, or monetary policy — this one matters.