After a long span of time State Bank of Pakistan announced to decrease interest rate by 2% which becomes 9% after immediate effect. SBP took the decision in the light of slow growth and to cumbersome the inflation rate. “The MPC decided at its emergency meeting today to cut the policy rate by a further 200 basis points to 9 per cent.”
Many economist in the past passed remarks on exorbitant rate that this has to be decrease to single digit which will necessary to a boost business sector. Mostly emerging markets like Sirilanka, Bangladesh Malaysia have a rate around 5% to encourage international trade.
Officials said, step is taken to reduce unemployment and increase growth, including by easing borrowing costs and the debt service burden of households and firms, while also maintaining financial stability. It would also help ensure that economic activity is better placed to recover when the pandemic subsides,” it added.
Few days ago SBP also offers a loan to business sector to stop doing downsizing. which results in high unemployment. they offers a loan on 5% to pay salaries of staff instead of firing from job which is a good step under corona virus catastrophe.
Stay indoor, stay safe
Stay tune to magmega for more updates.
I am a goal oriented, enthusiast and passionate blogger about advertising and marketing. Discovering newfound love for advertising and digital marketing. Love to decorate places. Trying to learn some and unlearn some as we sail through the highs and lows of life. “Digital” is my favorite keyword. Words work like therapy and the reason why this blog was created. Coupled with personal + professional experiences, this is my log book for myself and the world. Love Usman