Central banks of several countries have slashed their interest rates to stimulate growth in the wake of a global sl
- Central banks of several countries have slashed their interest rates to stimulate growth in the wake of a global slowdown due to the mysterious virus.
- The SBP has maintained its policy rate at 13.25pc since July 2019.
The State Bank of Pakistan (SBP) would announce its Monetary Policy today (Tuesday) for the next two months.
The central bank will make a decision on the key policy rate, which stands at 13.25 percent. The announcement comes amid the world is gripped by the novel coronavirus pandemic and central banks of several countries have slashed their interest rates to stimulate growth in the wake of a global slowdown due to the mysterious virus.
The US Federal Reserve on Sunday made another emergency cut to interest rates, slashing the federal funds rate by one percent to a range of 0-0.25 percent. Whereas, the Bank of England, cut its main interest rate by half a percentage point to a joint-record low of 0.25pc.
Meanwhile, several economic experts have pointed out that it is high time for the SBP to cut its policy rate. “The central bank should reduce the interest rate significantly, as the policy that we have implemented in December is not relevant anymore,” said Dr. Salman Ahmed, Chief Investment Strategist at Lombard, while talking to a private channel.
It may be mentioned that the global stocks have plummeted due to panic selling, the Pakistan Stock Exchange (PSX) on Monday nosedived to record worst-ever single-day decline due to panic selling in all sectors by local and foreign investors on fears over coronavirus spread.
The KSE-100 Index closed at 33,684.91 points, with a worst-ever single-day decline of 2,375.97 points or 6.59 percent.