Pakistan cuts interest rates to 42-year low

AFP, KARACHI: Pakistan’s central bank Saturday reduced interest rates to a 42-year-low of six per cent, after inflation fell dramatically.
The State Bank of Pakistan (SBP) announced it had cut rates to six per cent from 6.5 per cent. Inflation came down to 3.6 per cent in July-August from 8.4 per cent in the same period last year due to falling fuel and food prices. The SBP added the Pakistan economy would receive a boost from infrastructure projects such as the planned China Pakistan Economic Corridor (CPEC).
“Therefore, there is anticipation of higher economic activity in (fiscal year) FY2015-16 which is expected to boost credit uptake,” the bank said.

Pakistan cuts interest rates to 42-year low

AFP, KARACHI: Pakistans central bank Saturday reduced interest rates to a 42-year-low of six per cent, after inflation fell dramatically. The State Bank of Pakistan (SBP) announced it had cut rates to six per cent from 6.5 per cent. Inflation came down to 3.6 per cent in July-August from 8.4 per cent in the same period last year due to falling fuel and food prices. The SBP added the Pakistan economy would receive a boost from infrastructure projects such as the planned China Pakistan Economic Corridor (CPEC). Therefore, there is anticipation of higher economic activity in (fiscal year) FY2015-16 which is expected to boost credit uptake, the bank said.