IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the fourth straight cut since June, bringing the total decrease in rates to 700bps as inflation has been declining faster than expected over the last several months, reaching closer to the bank’s medium-term target range of 5pc-7pc. Pakistan’s annual inflation rate dropped to a 44-month low of 6.9pc in September but rose slightly to 7.2pc last month. Real interest rates remain significantly positive, underscoring the bank’s cautious stance. The IMF, too, has revised down its inflation forecast for Pakistan,........

© Dawn