Pakistan Cuts Benchmark Interest Rate to 7.0%... Down 6.25%P Since COVID-19

Published 25 Jun.2020 19:58(KST)

Pakistan Central Bank Logo
Photo by Reuters Yonhap News

[Asia Economy Reporter Eunbyeol Kim] Pakistan has once again cut interest rates due to the impact of the novel coronavirus disease (COVID-19).

On the 25th, Bloomberg reported that the State Bank of Pakistan lowered the benchmark interest rate by 1.0 percentage point from 8.0% to 7.0%.

While Pakistan maintained a benchmark interest rate of around 13.25% in January, it has lowered the rate by 6.25 percentage points in five steps since March following the spread of COVID-19.

The State Bank of Pakistan explained that the benchmark interest rate was cut due to the ongoing domestic economic slowdown and increasing downside risks to the economy.