SBP to issue monetary policy on March 17
- SBP has kept the interest rate unchanged since July 2020, when it was cut by 100 bps from 8%. In January 2020, it was 13.25 %.
KARACHI: State Bank of Pakistan is scheduled to announce its monetary policy statement here on Wednesday for next two months determining its policy (interest) rate, which at present is 7 % per annum.
The Central Bank has kept the interest rate unchanged since July 2020, when it was cut by 100 bps from 8% ( 1% cut). In January 2020, it was 13.25 %.
For managing the critical economic situation emerging from COVID-19 pandemic, State Bank came for the relief and quickly reduced the rate down to 7 % in three shots over period of four months.
M.Zubair Motiwala, a leading industrialist and textile exporter, and former president of Karachi Chamber of Commerce and Industry was of the view that the Central Bank should not increase its policy (interest) rate for keeping intact the scale of production and the export of the country.
Instead of raising the interest rate, SBP and the government should resort to other required measures to control inflation like ensuring the fair balance in supply and demand. High interest rate would push the cost of production up and it would be difficult for the industrialists to continue their production activities at same level and would make them non-competitive in the regional and international markets.
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