Pakistan's Central Bank Slashes Rates to Revive Economy
Pakistan's central bank has reduced its key policy rate by an additional 200 basis points to 13%, marking the fifth consecutive cut since June. This move aims to stimulate the economy amid easing inflation and is the most aggressive among emerging markets.

- Country:
- Pakistan
The State Bank of Pakistan has announced a significant cut to its key policy rate, slashing it by 200 basis points to 13% on Monday. This marks the fifth consecutive reduction since June, as the nation intensifies its efforts to reinvigorate a lethargic economy amid easing inflation rates.
A survey by Reuters revealed unanimous anticipation of the 200 bps rate cut, mirroring predictions by all 12 surveyed analysts. This strategic adjustment is a clear indication of Pakistan's commitment to fostering economic recovery and responding to market expectations.
Pakistan stands out for its aggressive rate-cutting measures this year among emerging market central banks, with only exceptions such as Argentina displaying a more radical approach. This ongoing easing cycle underscores the pressing need to bolster economic momentum as inflation shows signs of stabilization.
(With inputs from agencies.)
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