The Pakistan Stock Exchange (PSX) sustained its record-breaking streak, crossing the 109,000-point mark after a gain of over 1,100 points, driven by optimism over a potential cut in the policy rate due to declining inflation.
The surge comes as the State Bank of Pakistan (SBP) prepares for its Monetary Policy Committee (MPC) meeting on December 16, where further easing of the key policy rate is anticipated. Trading on Thursday closed at 108,322 points.
The optimism stems from Pakistan’s inflation rate plummeting to 4.9% in November, the lowest in six and a half years, compared to 7.2% in October, according to the Pakistan Bureau of Statistics.
The sharp decline in inflation is expected to pave the way for additional monetary easing, reducing borrowing costs for businesses and industries and boosting market sentiment.
