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Summary State Bank of Pakistan (SBP) will announce the first monetary policy of the current fiscal year.
The financial experts say that high interest rate is discouraging for the business community while the price hike is out of control. However, the bank is widely expected to keep the interest rates on hold because of resurgent inflation.Pakistan’s basic interest rate is highest in the region, while the average price hike rate more than 14.5 per cent during the past four year.Monetary police gains importance when the economy is in crisis. The developed countries lowered their interest rate to tackle the economic crisis but Pakistan still lacks this tendency to facilitate the business community.According to State Bank’s report, volume of loans to the consumers is decreasing while the banks consider investment in treasury bonds to be secure.
