Pakistan cuts key rate to 12.50% amid fear of growth slide due to coronavirus

Researchers working at the drug centre for Covid-19 cure at a company in Wuqing District, north China's Tianjin Municipality. China has completed the clinical research of Favipiravir, an antiviral drug that has shown good clinical efficacy against the Covid-19 (coronavirus) outbreak, according to an official on Tuesday (March 17). - Xinhua/ANN

KARACHI: Pakistan's central bank on Tuesday cut its key interest rate by 75 bps to 12.50%, the first reduction in four years, citing a global slowdown to ease inflationary pressure.

A dip in oil prices and a global slowdown caused by the coronavirus should ease Pakistan's inflationary pressure, which could also help improve the current account, the bank said.