Pakistan Interest Rate 1992-2015 | Data | Chart | Calendar | Forecast

The benchmark interest rate in Pakistan was last recorded at 8 percent. Interest Rate in Pakistan averaged 12.45 percent from 1992 until 2015, reaching an all time high of 20 percent in October of 1996 and a record low of 7.50 percent in November of 2002. Interest Rate in Pakistan is reported by the State Bank of Pakistan.

      Forecast    
Pakistan Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
8.00 8.50 20.00 7.50 1992 - 2015 percent Daily
In Pakistan, interest rates decisions are taken by the State Bank of Pakistan. The official interest rate is the discount rate. This page provides - Pakistan Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - Pakistan Interest Rate - was last refreshed on Sunday, March 29, 2015.


Pakistan Lowers Key Rate to 8.5%


The State Bank of Pakistan cut its key interest rate for the second straight meeting by 100 bps to 8.5 percent in January, citing lower inflationary pressure due to falling oil prices.

Excerpts from the statement by the State Bank of Pakistan:

The key macroeconomic indicators have improved further since the last monetary policy decision of November 2014. CPI inflation and its expectations continue to follow a downward trajectory. In the last two months of November and December 2014 trade deficit has declined, though it has increased in H1-FY15 when compared to H1-FY14. Moreover, considerable foreign exchange inflows have contributed in maintaining an upward trajectory in foreign exchange reserves. Containment of fiscal deficit thus far is also encouraging and bodes well for the credibility of consistent and coherent policies of the government and for the continuation of official and private capital inflows. With these positive developments, first half of the current fiscal year ended on a better macroeconomic outlook for the remaining months of FY15.

While the impact of recent policy rate cut on the economy is subject to a lag, various other factors continued to pull the headline CPI inflation on YoY basis down to 4.3 percent in December 2014. This disinflation is broad based as both food and non-food inflation have been declining. The deceleration in the former is mainly the result of better supply conditions, while the latter is explained by a combination of factors. These include plummeting international oil price as well as decline in other global commodity prices; lagged impact of earlier conservative monetary policy stance and moderating aggregate demand; and stable exchange rate. 

It is pertinent to note here that while the recent plunge in international oil price has induced low inflation and improved trade outlook, it is not without some subtle risks to future inflation. The speed and intensity, with which the inflation has come down and continues to recede, can induce expectations of rather low inflation, which may induce additional consumption. There is no doubt about the redistribution of income from oil producers to oil consumers and since the latter has a higher propensity to consume, there will be some affect on private consumption. Thus, the recent reduction in domestic commodity prices may lead to more spending and as long as additional impact on aggregate demand remains in line with aggregate supply, inflation is likely to remain low.

State Bank of Pakistan | Joana Taborda | joana.taborda@tradingeconomics.com
1/26/2015 11:09:02 AM


Recent Releases

Pakistan Cuts Key Rate by 50 bps
The State Bank of Pakistan decided to lower the benchmark policy rate by 50 bps to 9.5 percent at its November meeting, citing lower inflation. Published on 2014-11-18

Pakistan Leaves Rate Steady at 10%
At its September 20th meeting, the State Bank of Pakistan left its key policy rate unchanged at 10 percent. While citing lower inflation and higher growth, policymakers showed concerns over political impasse, the delay in IMF’s fourth review and floods as potential risks to growth. Published on 2014-09-22


Pakistan Money Last Previous Highest Lowest Unit
Interest Rate 8.00 8.50 20.00 7.50 percent [+]
Interbank Rate 8.96 9.47 17.42 1.21 percent [+]
Money Supply M0 3005472.00 3027421.60 3027421.60 1413617.11 PKR Million [+]
Money Supply M1 8178631.00 8009165.00 8178631.00 3168848.00 PKR Million [+]
Money Supply M2 10221194.00 10145704.00 10221194.00 4431502.00 PKR Million [+]
Money Supply M3 13117964.00 13025881.00 13117964.00 5548454.00 PKR Million [+]
Foreign Exchange Reserves 15162.60 15267.90 18294.80 1973.60 USD Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Mar/15 2.25 17.50 2.25 percent [+]
Brazil 12.75 Mar/15 12.25 45.00 7.25 percent [+]
Canada 0.75 Mar/15 0.75 16.00 0.25 percent [+]
China 5.35 Mar/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Mar/15 0.05 4.75 0.05 percent [+]
France 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Mar/15 0.05 4.75 0.05 percent [+]
India 7.50 Mar/15 7.75 14.50 4.25 percent [+]
Indonesia 7.50 Mar/15 7.50 12.75 5.75 percent [+]
Italy 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Mar/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Mar/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Russia 14.00 Mar/15 15.00 17.00 5.00 percent [+]
South Korea 1.75 Mar/15 2.00 5.25 1.75 percent [+]
Spain 0.05 Mar/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Mar/15 -0.75 3.50 -0.75 percent [+]
Turkey 7.50 Mar/15 7.50 500.00 4.50 percent [+]
United Kingdom 0.50 Mar/15 0.50 17.00 0.50 percent [+]
United States 0.25 Mar/15 0.25 20.00 0.25 percent [+]