Minimal 1% rate cut criticised

Industrialists, traders, and business leaders strongly criticised the State Bank of Pakistan's (SBP) decision during its Monetary Policy Committee (MPC) meeting to cut the interest rate by just 1%, urging swift reduction to single digits without any further delay. Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani termed the State Bank of Pakistan (SBP)'s decision to reduce the policy rate by 1%, bringing it down to 11% from 12%, as a positive yet inadequate step towards economic revival. The cut does not meet the expectations of the business community, which has been persistently calling for a substantial reduction to bring the interest rate down to single digits. He said the current macroeconomic environment, especially the record-low inflation rate, provides ample of room for a deeper policy rate cut.