SBP cuts interest rate by 1.5 basis points
March 24, 2020 07:51 PM
The State Bank of Pakistan on Tuesday slashed the interest rate by 1.5 basis points after a Monetary Policy Committee, saying the decision was taken while keeping in mind the country’s situation.
The interest rate now stands at 11 per cent. However, the business community was demanding four to five basis point cut.
Earlier last week, slashing down the interest rate, the State Bank of Pakistan announced bi-monthly monetary policy and set it at 12.50 per cent.
Previously, the policy rate was at 13.25 per cent. The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) announced the new interest rate.
The central bank cut the interest rate by 75 basis points. The lowering down of the interest rate was expected in line with the global economic slowdown due to coronavirus pandemic.
The SBP announced to give loans to hospitals on a 3 per cent interest rate. “Inflation rate is expected to lower down in the coming two months. Petroleum prices will also lower down due to cut in crude oil prices.”