Cut in interest rate jacks up auto financing

The downward trend in the interest rates has pushed up auto financing to Rs241.6 billion in January from Rs235.45bn in December 2024, data released by the State Bank of Pakistan showed. In the last seven months, cutting interest rates to 12pc from 22pc has lured cash-rich customers towards auto financing of new and used vehicles. In June 2022, auto financing was at its peak of Rs368bn. An analyst at Sherman Securities expects that headline inflation in February may clock in at 1.9pc due to a declining food and housing index compared to 2.4pc year on year. The State Bank may implement a 100bps policy rate cut in the Monetary Policy Committee (MPC) meeting scheduled for March 25.