Pakistan among top major economies of the World with highest interest rates

Pakistan among top major economies of the World with highest interest rates
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ISLAMABAD - Real interest rates in South Asia are among the highest in the world, raising the prospect of more dovish monetary policy in the region, Bloomberg has reported.

Sri Lanka, Pakistan and India rank in the top five of the world's major economies with the highest inflation-adjusted interest rates.

While negative real rates might be considered a sign of financial instability, a high inflation-adjusted benchmark interest rate is, on balance, a reason for central bankers to consider a looser policy stance. [image: 2o3f49k8]

Indian Finance Minister has already complained about high real rates, and economists are starting to price in the possibility of a rate cut as early as next month.

Economy