The State Bank of Pakistan raised its benchmark interest rate by 100 bps to 13.25 percent during its July meeting, amid increased inflationary pressures and elevated fiscal and current account deficits. Consumer price inflation is expected to rise in the near-term due to higher utility costs. Interest Rate in Pakistan averaged 11.17 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 13.25 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 14.50 in 12 months time. In the long-term, the Pakistan Interest Rate is projected to trend around 10.00 percent in 2020, according to our econometric models.