Trade, industry insist on single-digit policy rate
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December 17, 2024
Trade, industry insist on single-digit policy rate
KARACHI: Barring foreign investors and multinational companies (MNCs), the State Bank’s decision to cut the interest rate by 200bps to 13pc on Monday disappointed local businessmen expecting a 400-500bps cut in line with a sharp drop in inflation.
While extending a cautious welcome to the policy rate decision, Federation of Pakistan Chamber of Commerce and Industry President (FPCCI) Atif Ikram Sheikh termed it insufficient as the apex chamber had sought a 500bps cut since inflation hit a 78-month low at 4.9pc in November.
He said that bringing the policy rate to a single digit would boost economic activities as overall major indicators showed a positive trend.
However, Pakistan Business Council Chief Executive Ehsan Malik said the cut is consistent with the expectations to keep inflationary and current account pressures in check and support gradual and sustainable growth.
