ISLAMABAD: Pakistan cut its benchmark interest rate for the fifth straight meeting as easing inflation provides room for the central bank to boost growth.
The State Bank of Pakistan lowered the target rate by 200 basis points to 13%, the central bank said in a statement Monday. All the 41 economists surveyed by Bloomberg predicted the move, with 26 fore-casting the exact measure. Pakistan’s inflation eased to the lowest in more than six years in November, providing space to the central bank to ease interest rates further.
The South Asian nation’s economy is turning a corner, with a $7 billion loan from the International Monetary Fund and higher remittances helping boost the foreign exchange reserves. The forex stock-pile rose to $12.05 billion as of Dec. 6, the highest level since March 2022. –Agencies
