FPCCI wants drastic cut in interest rate

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh has unequivocally demanded that the key policy rate be cut down to nine per cent as the Consumer Price Index-based inflation hit a 44-month low at 6.9pc in September
“There will still be a 200 basis points (bps) premium at 9pc policy rate, which is a safe buffer for any monetary policy aiming inflation in the single digits,” he said in a statement.
He demanded an emergent meeting of the Monetary Policy Committee (MPC) of the State Bank of Pakistan in which a decision should be taken on the overdue reduction in the benchmark interest rate. The next MPC meeting is scheduled for Nov 4, which will be too late to pass on the relief.
“We have an opportunity to curtail the cost of doing business substantially through making access to finance possible at rational rates,” he added.
Published in Dawn, October 3rd, 2024