Pakistan Cuts Interest Rates For 5th Time 📈
The State Bank of Pakistan reduced its key policy rate by 200bps to 13%, marking the fifth consecutive rate cut this year, aimed at balancing inflationary and external account pressures while fostering sustainable economic growth.
The rate cut by the State Bank of Pakistan is a positive development for the investment portfolio, as it signals a shift towards a more accommodative monetary policy. This could potentially benefit the portfolio's exposure to the Pakistani market, as well as broader emerging market assets. The reduction in borrowing costs may help stimulate economic growth and improve the country's external account position, which could have a moderately positive impact on the overall portfolio performance.