Karachi: The State Bank of Pakistan will hold a monetary policy meeting today to decide on the interest rate.
According to a spokesperson for the State Bank, the meeting will review the country’s economic situation, which will inform the decision on the interest rate.
Currently, the base interest rate stands at 19.5%. With inflation coming down to single digits, there is room for a significant reduction in the interest rate.
Most of the country’s industrialists and traders have urged the central bank to cut the interest rate by 3 to 4 percent.
Any substantial reduction in the policy rate could lead to a decrease in the country’s foreign exchange reserves, which might reduce the value of the rupee.
Previously, the State Bank had reduced the interest rate by 1.5 percent on June 10 and by 1 percent on July 29.