Why did the State Bank of Pakistan cut interest rates?

The State Bank of Pakistan unexpectedly cut its target interest rate by 50 basis points to 10.5% following the IMF's approval of another loan payment.

What was the new interest rate in Pakistan?

The new target interest rate in Pakistan was set at 10.5% after the central bank's recent 50 basis point cut.

Was Pakistan's interest rate cut expected?

No, the 50 basis point interest rate cut by the State Bank of Pakistan was a surprise, with most economists not predicting it.

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Pakistan Central Bank Cuts Rates Unexpectedly

15 Dec

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Summary

State Bank of Pakistan reduced the target interest rate by 50 basis points.
The new target rate is now 10.5%, a surprise move by the central bank.
This decision followed the IMF's recent approval of another loan payment.

Pakistan Central Bank Cuts Rates Unexpectedly

In a move that defied market expectations, Pakistan's central bank announced an unexpected reduction in its key interest rate. The State Bank of Pakistan has lowered its target rate by 50 basis points, bringing it down to 10.5%.

This monetary policy shift occurred shortly after the International Monetary Fund gave its approval for another tranche of loan payments to Pakistan. The decision to cut rates was not widely predicted, with most economists surveyed by Bloomberg anticipating no change.

Only two out of 42 economists polled foresaw this particular rate adjustment, underscoring the element of surprise associated with the central bank's decision on Monday.

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