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