State Bank Slashes Interest Rate to 11%
Karachi: The State Bank of Pakistan has announced a one percent cut in interest rates under the new monetary policy, reducing it from 12 to 11 percent.
The central bank says that the aim of this move is to reduce business costs and promote activity in the economy.
According to the announcement, the inflation scenario has improved compared to previous estimates and the trend of decreasing inflation continued in the month of April as well.
The State Bank has expressed the expectation that inflation will stabilize within the set target of 5 to 7 percent in the next few months, while foreign exchange reserves are expected to reach $14 billion by June.
The announcement warns that energy tariffs and international political situations may affect the country’s economy.
It should be remembered that the State Bank has reduced interest rates by a total of 10 percent in the current fiscal year, however, the demand from the business community to bring the interest rate to single digits still persists.
