State Bank of Pakistan slashes rates to decade low

Ashraf Mahmood Wathra, governor, State Bank of Pakistan

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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