The central bank of Pakistan lowered its benchmark interest rate by 100 bps to 7% during an unscheduled meeting in June 2020. This was the fifth rate cut since the coronavirus pandemic began to spread through the country in March, to continue supporting domestic economic activity against a backdrop of lower inflation. Headline inflation has been decreasing considerably from an over 9-year high of 14.6% in January to 8.2% in May, while the government is targeting inflation to average 6.5% in FY 2020/2021. The economy is expected to contract 0.4% in the current fiscal year, before recovering by 2.1% in the next fiscal year, according to government estimates. Policymakers explained further that the priority of monetary policy has appropriately shifted toward supporting growth and employment during these challenging times.
Interest Rate in Pakistan averaged 11.19 percent from 1992 until 2020, reaching an all time high of 19.50 percent in October of 1996 and a record low of 5.75 percent in May of 2016. This page provides - Pakistan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Pakistan Interest Rate - values, historical data and charts - was last updated on July of 2020. source: State Bank of Pakistan
Interest Rate in Pakistan is expected to be 7.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Pakistan to stand at 7.50 in 12 months time. In the long-term, the Pakistan Interest Rate is projected to trend around 8.50 percent in 2021 and 10.00 percent in 2022, according to our econometric models.