Updated on
Summary
The second monetary policy of the current fiscal year would be announced today, interest rates are likely to be kept on 12.5 percent.The session of the Central Bank would be held in Lahore. Governor State Bank of Pakistan (SBP) Saleem Raza hinted that interest rate may be lowered in the coming monetary policy. Senior bankers said that the interest rate constitute the miniscule part of any companys trading. They said that the government would also have to address the energy crisis besides SBP monetary policy correlating with other policies. Economists also accept that following the entrance into IMF program, its approval on policy decisions was necessary. It may be recalled that monetary policy is not made keeping in view the inflation and price-hike rates only. Lower interest rate would induce buying on taking loans and because of the low production capacity, the demand pressure would be met by imports, which would result in depletion of foreign exchange reserves, weakening of rupee value and widening trade deficit gap.
