world-economy

Pakistan Holds Rates Steady as Oil Prices Signal Economic Relief

Pakistan's central bank left its key interest rate unchanged Monday, positioning itself as the first monetary authority to factor in the economic effects of an interim U.S.-Iran agreement. Oil prices have dropped sharply in anticipation of the deal, which is expected to reopen the Strait of Hormuz and ease global energy costs. Pakistani policymakers are betting that lower crude expenses will help reduce inflationary pressure on consumer prices without requiring immediate rate adjustments. The move reflects cautious optimism across markets, though investors remain concerned about lingering economic fallout from the conflict. Global freighter capacity rose 4% month-on-month, yet air freight rates have remained elevated despite easing fuel costs as airlines, forwarders, and shippers adapt to market shifts.