KARACHI: Yaseen Anwar, governor State Bank of Pakistan, said on Friday that the central bank has decided to cut key interest rate by 150 bps to 10.50 percent effective from Monday, SAMAA reports.

Unveiling the monetary policy statement at a press conference in Karachi today, he said that the country’s economy is still facing severe macroeconomic challenges. He said inflation in July was recorded at 9.6 percent but the full-year inflation is likely stay higher in the 10-11 percent range by the end of current fiscal year, adding relatively high inflation is a manifest of economic weakness.

Anwar termed ongoing power crisis in the country as one of the core factors behind economic problems faced by the country.

He said that GDP growth in the current fiscal year is expected to remain between 3-4 percent, adding with the view to boost economic activity in the country the central bank has decided to cut the key discount rate by 150 bps to 10.50 percent. - SAMAA