Pakistan Central Bank Cuts Key Rate by 100 bps

PAKISTAN - KARACHI. Pakistan's central bank cut its key policy rate by 100 basis points to 12% on Monday, the governor told reporters, for a sixth straight reduction since June as the country attempts to revive business and economic sentiment amid easing inflation.

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The State Bank of Pakistan has slashed rates by 1,000 bps from an all-time high of 22% in June 2024, in one of the most aggressive moves among central banks in emerging markets and topping the 625 bps in rate cuts it did in 2020 during the COVID-19 pandemic.