Traders and businesses community have expressed dismay over State Bank of Pakistan (SBP)’s decision to maintain policy rate at 10.5 points on Monday, reported 24NewsHD TV Channel.
In their separate statements and reaction on central bank decision, Lahore Chambers of Commerce and Industry (LCCI) and Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that government has taken the decision against the wishes of the businesses and traders community who wanted big cut in key rates.
FPCCI SVP Saqib Fayyaz Maggo said that inflation has reached 5.6%, yet interest rates have not been reduced.
Senior Vice President FPCCI said that high interest rates have made business costs unbearable, State Bank should review immediately. He said that the decision has been termed as completely contrary to the expectations of the Federation of Pakistan Chambers of Commerce and Industry and the entire business community. He said that inflation rate in the country is gradually decreasing and at present, inflation has come down to 5.6 percent.
FPCCI said that keeping this in mind, there was clear scope for a reduction in the policy rate. In this situation, the State Bank could have easily brought the policy rate down to single digits. However, not doing so is disappointing for the business community.
LCCI President Faheem ur Rehman Sehgal has expresses disappointment over the policy rate decision.
He said that central bank decision to maintain interest rates was disappointing for the business community.
Lahore Chamber head said that high interest rates were affecting investment and industrial development. Faheem Sehgal said that private sector investment was under continuous pressure. Lahore Chamber President said that expensive loans have added to the problems of industrialists. He said small and medium-sized businesses are unable to take loans. President Lahore Chamber demanded that a reduction in interest rates of at least 1.5 to 2 percent is inevitable.