Pakistan Central Bank Cuts Rates by Record 250 bp, Beating Expectations

PAKISTAN - KARACHI. Pakistan's central bank cut its key policy rate by a record 250 basis points to 15% on Monday, exceeding expectations, as the country bid to revive a sluggish economy amid a big drop in the rate of inflation.

Respondents in a Reuters poll last week expected a cut of 200 bps after inflation moved to 7.2% in October, a sharp drop from a multi-decade high of nearly 40% in May 2023, saying reductions were needed to bolster economic growth. The finance ministry expects inflation to slow further to 5.5% to 6.5% in November.

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