Pakistan's Central Bank Slashes Key Rate in Surprise Move

Pakistan's central bank has reduced its key policy rate by 200 basis points to 17.5%, marking the third consecutive reduction since June. This move aims to stimulate economic growth as inflation subsides, following recent predictions of a 150 basis point cut by respondents in a Reuters poll.

In a surprising move, Pakistan's central bank reduced its key policy rate by 200 basis points to 17.5% on Thursday. This marks the third consecutive reduction since June as the country seeks to stimulate economic growth amidst easing inflation pressures.

A Reuters poll earlier this week had indicated that most respondents expected a cut of 150 basis points, following a significant drop in inflation to single digits in August for the first time in nearly three years.

Economic analysts are closely watching this development, as the central bank's aggressive rate cuts aim to spur growth in an economy that has been struggling with high inflation.

(With inputs from agencies.)