State Bank of Pakistan announces key interest Rates for the next two months
*ISLAMABAD - **State Bank of Pakistan announces key interest Rates for the next two months.*
*The State Bank of Pakistan slashed its key interest rate by 75 basis points to 12.50% on Tuesday. *
*The central bank cited deceleration in domestic food prices as the reason for cutting the policy rate.*
SBP said that the outlook on the headline inflation, a measure of the total inflation including commodities such as food and energy prices, remains within its earlier forecast range of 11% to 12%
The official statement attributed the cut to the central bank’s efforts in aiding healthcare and trade amid the coronavirus pandemic. It noted that the viral outbreak has caused a slowdown in the global economy and also precipitated an oil crisis.
The press statement read that the present volatility faced by the Pakistani market is externally driven and as soon as the risk posed by COVID-19 subsides, the volatility will dissipate.
However, market experts, on the eve of the policy announcement had varying ideas based on their rationale.