Pakistan’s inflation eased to 6.93% YoY in September, the lowest in almost four years, driven by lower fuel prices and easing food costs. The central bank cut its benchmark interest rate by 450 bps since June, and the slowdown may provide room for further cuts. The government’s fiscal restraint, part of a USD 7 bln loan agreement with the IMF, could help inflation remain below earlier estimates of 11.5%-13.5%.