Discount rate lowered by 100 basis points to 14 percent

KARACHI (April 21, 2009): The State Bank of Pakistan, easing its monetary policy for the first time in 22 months, on Monday slashed key policy rate by 100 basis points to 14 percent citing positive inflation outlook. The SBP adopted tight monetary stance in July 2007 aiming to curb inflation and shrink liquidity in the market and since then has raised its policy rate by 550 basis points to take it 15 percent.