Home News Business Community disappoint on meager rate cut, Dr. Baig

Business Community disappoint on meager rate cut, Dr. Baig

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Dr. Mirza Ikhtiar Baig

Dr. Mirza Ikhtiar Baig former SVP & Chairman standing committee on Banking FPCCI said that the business community disappointed on State Bank of Pakistan meager cut in their policy rate by only 75bps to 12.5% ignoring the demand of business community to reduce by 200bps to 11.25%. Dr. Baig said, in his meeting with Prime Minister Imran Khan, Governor SBP Reza Baqir & Advisor to PM on Finance Dr. Abdul Hafeez Sheikh, repeatedly emphasized need to reduce the bank lending rates for economic revival especially when central banks of 20 countries have slashed their rates to bottom including US Federal Reserve cut to zero to stimulus economy to counter effects of coronavirus, he added that State Bank has missed an opportunity to support the economy and stock market which is witnessed with today’s crash of Pakistan Stock Exchange by 2100 points touching recent lowest level of 30,000 Index.

PSX shown historic decline of 22% in the last 13 days as a result of SBP not reducing the policy rate as per market expectation. He said that inflation and current account deficit are already declining and market badly needed fiscal support in the present catastrophic situation of coronavirus, higher interest rates will not serve any purpose.

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