Karachi: State Bank of Pakistan (SBP) has slashed discount rate by 150 bps to 10.5 percent for the period of two months— a very surprising and welcome decision for industrialists and business community.
The cut in policy rate was announced by Yaseen Anwar, Governor State Bank of Pakistan (SBP) on Friday.
The decision was taken in the light of controlled inflation that came to settle down at 9.6% in July whereas the incentive aimed to be given private sector to enhance investment for sustainable economic growth.
The reduction in interest rate is likely to stimulus the economy of the country as credit to private sector is expected to increase to grow the business activities in the country.
The role of central bank is not to control finance of the country but it also invigorates the economic activity in the country, Anwar added.
The receipts of $1.118 billion from US have given cushion to current account, on the other hand, remittance played a vital role in the stability of external account.
The inflows of foreign exchange will contain the position of current account deficit in the coming months, he added.