Pakistan central bank cuts policy rate by 250 basis points to 15%

Reduction more drastic than 200 points predicted in recent Reuters poll

Pakistani rupees continue to steadily lose value with the central bank battling inflation of 7.2% in October, and the finance ministry hoping this will fall below 6.5% in November. © Reuters

November 4, 2024 21:29 JST

KARACHI (Reuters) -- Pakistan's central bank cut its key policy rate by 250 basis points to 15% on Monday, it said in a statement, for a fourth straight reduction since June, as the country keeps up efforts to revive a sluggish economy with inflation easing.

Most respondents in a Reuters poll last week expected a cut of 200 bps after inflation moved down sharply from a multi-decade high of nearly 40% in May 2023, saying reductions were needed to bolster growth.