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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Pakistan may start cutting interest rates this year Reuters - 2 hours 2 minutes ago KARACHI, Jan 26 - Pakistan might start cutting interest rates this year as inflation decreases, the adviser to the prime minister on economic affairs said on Monday. "Inflation is coming down so pressure on interest rates will decrease and we will hopefully start cutting interest rates this year," Shaukat Tarin, the country's top economic troubleshooter and de facto finance minister, told reporters. Tarin did not specify if he meant this calendar year or the fiscal year, which ends on June 30. Pakistan's consumer price index rose 23.34 percent in December from a year ago, but prices fell 0.50 percent from November, when annual inflation stood at 24.68 percent, down from an October peak of 25 percent. Tarin said he expected inflation in January to fall further because of the statistical base effect. Monetary policy for the second half of fiscal year 2008/09 is due to be announced on Jan. 31. Analysts expect the central bank to keep interest rates on hold but say the need for rate cuts is becoming more urgent as the economy weakens. [ID:nSIN397370] However, Mohsin Khan, an economist who led IMF negotiations with Pakistan two months ago, said last week Pakistan needed to raise interest rates further to build foreign exchange reserves and dampen inflation despite the threat of recession. [ID:nISL336768] The central bank raised interest rates by 2 percentage points to 15 percent in November, the same month it signed a $7.6 billion loan with the International Monetary Fund to stave off a balance of payments crisis. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: Business Smurfit-Stone files for chapter 11 bankruptcyReuters - 34 minutes ago Steelmaker Corus to extend output cuts into Q2Reuters - 35 minutes ago Turkish markets firm on IMF hopes after cbank commentsReuters - 37 minutes ago FOREX-Euro, sterling trim losses as shares riseReuters - 37 minutes ago ING to take government guarantees,CEO steps downReuters - 37 minutes ago Most Popular – Business Viewed Child matador kills six bulls in Mexico Hudson 'miracle' pilot gets hero's homecoming 'Dogs don't wear condoms,' says Baywatch star Anderson Global warming could unleash ocean 'dead zones': study Ring of fire: Indian Ocean to see solar eclipse View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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