Pakistan lowers interest rate by 250 basis points

by Anadolu Agency

ISTANBUL

The State Bank of Pakistan has lowered its policy interest rate by 250 basis points to 15% on Monday.

The bank’s monetary policy committee stated that inflation has dropped faster than forecast and has reached close to its medium-term target range in October.

The annual inflation rate in the country was at 7.2% in October, up from 6.9% in September. It was at 28.3% at the beginning of the year.

“The Committee assessed that the tight monetary policy stance continues to play an important role in sustaining the downward trend in inflation,” the bank said.

A sharp decline in food inflation, favorable global oil prices and absence of expected adjustments in gas tariffs have accelerated the pace of disinflation in recent months, it added.

You may also like