Pakistan Cuts Rates
- Alexangel Ventura
- Sep 12, 2024
- 1 min read
After years of US-like inflation increases, the Pakistan Central Bank has finally announced rate cuts.
Policymakers, after three consecutive meetings, agreed upon lowering interest rates to the lowest levels since 2022, substantially improving the nation's ability to acquire international loans.
Pakistan lowered the benchmark rate at 17.5%, which was predicted by only 4 of 48 Bloomberg analysts.
The central bank argued that lower rates are warranted as inflation is beginning to cool down, and it is important to restore low rates to improve the business environment and make loans more accessible for companies, banks, and people.
Pakistan also wanted to cut rates to lower its spending on interest payments, as the country borrowed lots of money.
This could be yet another pressure on the U.S. Fed to cut rates.
