Karachi (Staff Report): The State Bank of Pakistan (SBP) on Tuesday reduced the interest rate by 75 basis points to 12.5 percent for the next two months.
The SBP announces a target rate every two months, which serves as the benchmark interest rate for overnight funds in the inter-bank market. It is one of the tools the central bank uses to ensure price stability in the economy.
Over the past few weeks, a large number of world economies have cut interest rates to allay investor concerns as global markets remain in free fall amid coronavirus fears.