The State Bank of Pakistan raised its benchmark interest rate by 150 bps to 12.25 percent during its May meeting, in an attempt to curb rising inflation amid a weak rupee and an elevated fiscal deficit. Consumer price inflation eased to 8.82 percent year-on-year in April from 9.41 percent in March, which was the highest since November 2013. Interest Rate in Pakistan averaged 11.16 percent from 1992 until 2019, reaching an all time high of 19.50 percent in October of 1996 and a record low of 5.75 percent in May of 2016.
Interest Rate in Pakistan is expected to be 12.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Pakistan to stand at 12.25 in 12 months time. In the long-term, the Pakistan Interest Rate is projected to trend around 8.50 percent in 2020, according to our econometric models.