Pakistan's National Savings reduces profit rates amid continuous monetary easing

Pakistan's National Savings has reduced profit rates on most of its savings instruments due to the overall decline in interest rates.

The Savings Account interest rate has been decreased from 16% to 13.5%. The Regular Income Certificate's profit rate has dropped from 12.12% to 12% starting December 10.

The Special Savings Certificate's profit remains at 11.60% per annum for the first five profits, increasing to 12.60% for the sixth profit.

Interest rates on the Behbood Savings Certificate, Pensioner's Benefit Account, and Shuhada's Family Welfare Account remain unchanged at 13.92%.

SARWA Islamic Term Account rates for one-year, three-year, and five-year terms have fallen to 10.44%, 10.92%, and 11.52%, respectively.

The State Bank of Pakistan has already lowered interest rates by 700 basis points from 22% in June to 15%. Analysts predict a further 200bps cut in the upcoming monetary policy meeting on December 16, potentially lowering the policy rate to 13%.

This is driven by a significant drop in inflation, which fell to 4.9% in November, the lowest in 79 months, and is expected to remain at this level in December.