SBP cuts key rate by 75 bps to 12.50% over coronavirus

07:51 PM | 17 Mar, 2020
SBP cuts key rate by 75 bps to 12.50% over coronavirus
Share

KARACHI – State Bank of Pakistan (SBP) on Tuesday cut its key interest rate by 75 bps to 12.50%, the first reduction in four years, citing declining inflationary pressure.

The SBP said a drop in oil prices and global slowdown caused by the coronavirus epidemic had eased the inflationary pressure for Pakistan.

The Central Bank has held the 13.25% interest rates steady since July when it paused after a series of hikes as data started showing the inflation rate stabilising. However, inflation has lately registered a decline.

Local businesses and exporters have lately been protesting high borrowing costs, which they said was harming investment.