KARACHI – All eyes are on State Bank’s announcement of new monetary policy, with experts hopeful of 2 percent cut amid drop in inflation.
Monetary Policy Committee (MPC), chaired by the SBP Governor, will convene today to review the country’s economic conditions and global developments before finalizing the policy rate.
With inflation at single digits, the central bank is expected to cut from 17.5 percent to 15.5 or 16. Leading firms and trader unions urged State Bank to slash interest rare by 400-500 points to stimulate trade and industrial activity.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) president lamented current monetary policy stance, as compared to core inflation, calling for an immediate reduction to enhance exports. The case for a significant rate cut is further strengthened by core inflation at 7.2 percent in October and expectations of declining international oil prices.
Lowering interest rate would allow exporters to better compete in regional and international markets by significantly reducing capital costs.
Ahead of announcement, all eyes will be on the State Bank and its decision regarding the much-anticipated interest rate adjustment.
Latest Profit Rate cut on Bahbood, Regular Income, and Special Saving Certificates
