The business community on Monday termed the State Bank of Pakistan’s rate cut “too low” to make any positive impact and suggested a reduction of 10-12 per cent. However, the community believed that the reduction set the direction that it would come down further if economic indicators kept improving. Pakistan’s central bank on Monday decided to reduce the policy rate by 150 bps to 20.5 per cent considering a significant decline in inflation. According to Reuters, the Pakistan Business Council (PBC) believes that “with headline inflation decelerating by 550 bps from April to 11.8 per cent in May, and the policy rate significantly positive, businesses generally expected a sharper cut.” (The News)
11/6/2024