Trade, industry insist on single-digit policy rate

Barring foreign investors and multinational companies (MNCs), the State Bank’s decision to cut the interest rate by 200bps to 13pc on Monday disappointed local businessmen expecting a 400-500bps cut in line with a sharp drop in inflation. While extending a cautious welcome to the policy rate decision, Federation of Pakistan Chamber of Commerce and Industry President (FPCCI) Atif Ikram Sheikh termed it insufficient as the apex chamber had sought a 500bps cut since inflation hit a 78-month low at 4.9pc in November. He said that bringing the policy rate to a single digit would boost economic activities as overall major indicators showed a positive trend.