Pakistan Cuts Rate to Shield Economy From Tariff Disruptions (1)

Pakistan cut its benchmark interest rate to shield the South Asian nation’s economy from global tariff-related disruption.

The State Bank of Pakistan cut the target rate by 100 basis points to 11%, the central bank said in a statement Monday. 13 of the 36 analysts surveyed by Bloomberg predicted a reduction, with only three forecasting the exact measure.

The central bank said “heightened global uncertainty surrounding trade tariffs and geopolitical developments could pose challenges” for Pakistan’s economy. The move indicates that the rate panel opted to keep a “measured monetary policy stance,” it said.

While Pakistan’s economy has stabilized and ...