Pakistan Slashes Interest Rates Amid Economic Changes

Pakistan's central bank has lowered its key policy rate by 100 basis points to 11%, resuming cuts after a brief pause in March. This decision follows a series of reductions from a high of 22%, aiming to counter risks such as price increases and U.S. tariffs.

In a strategic move to stabilize the economy, Pakistan's central bank has slashed its key policy rate by 100 basis points to 11%. This decision marks a continuation of a trend that saw interest rates fall from a steep 22% following a pause in March.

Nine out of fourteen analysts surveyed by Reuters anticipated the rate cut, with differing predictions on the magnitude. While the majority foresaw a rate reduction, opinions varied between a 50 basis point and a 100 basis point decrease.

Previously, the central bank had reduced rates by 1,000 basis points since June, pulling back from an all-time high. The pause in March was attributed to concerns about inflation and risks from U.S. tariffs.