KARACHI, Dec 16 Reuters Pakistan39;s central bank cut its key policy rate by 200 basis points to 13 on Monday, it said in a statement, its fifth straight reduction since June as the country keeps up efforts to revive a sluggish economy with inflation easing.

Pakistan39;s latest move makes this year39;s cuts the most aggressive among emerging market central banks in the current easing cycle, barring outliers such as Argentina.

Overall, the Committee assessed that its approach of measured policy rate cuts is keeping inflationary and external account pressures in check, while supporting economic growth on a sustainable basis, the bank39;s monetary policy committee said in a statement announcing its decision.

The bank noted that it expected inflation to average substantially below its earlier forecast range of 11.5 to 13.5 in 2025.

It added that the inflation outlook was susceptible to risks, including measures to meet government revenue shortfalls as well as food inflation and increased global commodity prices.

Inflation may remain volatile in the near term before stabilizing in the target range, the bank said.

The South Asian country is navigating a challenging economic recovery path and has been buttressed by a 7 billion facility from the International Monetary Fund IMF in September.

The bank noted that considerable efforts and additional measures would be required for Pakistan to meet its annual revenue target, a key focus of the IMF agreement.

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