The State Bank of Pakistan (SBP) on Friday cut its benchmark interest rate by 100 basis points to eight per cent, the fourth time it has cut rates since the coronavirus pandemic hit two months ago.
“Easier monetary policy … can provide liquidity support to households and businesses to help them through the ensuing temporary phase of economic disruption,” the SBP said, adding the likelihood of surging inflation expected earlier in the year had also reduced.
The bank has cut rates by a total of 525 basis points since the beginning of the health crisis two months ago and has announced a package of measures to support the economy and poorer workers hit by the pandemic.
