ISTANBUL

The State Bank of Pakistan has lowered its policy interest rate by 250 basis points to 15% on Monday.

The bank's monetary policy committee stated that inflation has dropped faster than forecast and has reached close to its medium-term target range in October.

The annual inflation rate in the country was at 7.2% in October, up from 6.9% in September. It was at 28.3% at the beginning of the year.

"The Committee assessed that the tight monetary policy stance continues to play an important role in sustaining the downward trend in inflation," the bank said.

A sharp decline in food inflation, favorable global oil prices and absence of expected adjustments in gas tariffs have accelerated the pace of disinflation in recent months, it added.