State Bank of Pakistan slashes rates to decade low
Central bank acts to stem falling inflation with 100bp cut
The State Bank of Pakistan (SBP) today slashed its headline interest rate to a 10-year low as inflation came in well below target.
The 100 basis point cut brings the interest rate to 8.5%. The last time interest rates were so low was April 2005, when the SBP raised rates from 7.5% to 9%.
The move comes as the SBP, as with central banks across the globe, struggles to cope with the impact of falling oil prices. Inflation came in at 4.3% in December, well below the central bank's 8% target, and is
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