KARACHI: President of Karachi Chamber of Commerce and Industry Muhammad Javed Balwani has rejected the 2.5% reduction in interest rate by State Bank.
He responded by saying that although KCCI had expected at least a 5% reduction in interest rates, it has been reduced by only .52%, which is neither sufficient nor in line with the downward trend in inflation. According to which has come to single digit.
With a reduction of 250 basis points, the policy rate now stands at 15 percent, which is still too high, so it should be cut more aggressively to bring it down to the single-digit range of 5 to 7 percent immediately, which the region and It is equal to other countries of the world.
He said that the business community would like to see interest rates in single digits, which would certainly encourage borrowing and promote expansion due to reduction in business costs, which would surely prove favorable to the economy. .
It is encouraging that the SBP has continued to ease the stance of monetary policy, as this is the fourth consecutive cut that has reduced the interest rate from 22 percent to 15 percent.
