Pakistan's central bank raised key interest rates by 100 basis points on 29th September 2018, citing rising inflation and large twin deficits. It marked the highest rate in over three years, amid intensifying speculation about an International Monetary Fund bailout. Since January, State Bank of Pakistan has hiked rates by 175 basis points. Also, policymakers have devalued the currency four times since December 2017. In August 2018, annual inflation rate in the country came in at 5.84 percent, the highest since September 2014. Interest Rate in Pakistan averaged 11.17 percent from 1992 until 2018, 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 8.75 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 9.25 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.