Central banks around the world have slashed interest rates, though perhaps none as aggressively as State Bank of Pakistan (SBP). According to a recent report by Bloomberg, Pakistan has cut its interest rates the most this year, out of a survey of nine countries, including the US, Peru, South Africa, Turkey and Ukraine. Coronavirus has created ‘unique’ challenges for a monetary policy due to its non-economic origin. In last three …
Read More »With the monetary policy having been announced by the State Bank of Pakistan, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed their concern. The president of the FPCCI, Mr. Shaukat Ahmed was of the opinion that keeping the policy rate unchanged was not seen as a measure taken to implement policy rather it is an act of escapism; a means by which the necessary measures …
Read More »With the new year having started, the prospects of the banking sector in terms of growth are looking bright. However, the question, which must be looked into is whether or not these banks will be able to help the government during its 5-year term and help the economy in achieving growth by helping the business and industrial sectors in particular. For high rates of growth to be achieved in …
Read More »Auto financing set to grow up after the positive outlook of economy The main advantage of low interest rates is their growth effect on economic activity. By reducing interest rates, the Central Bank helped increase business spending on capital goods. The reduction also helps economy’s long-term performance and increase household expenditures on homes/consumer durables. Low interest rates raise asset prices. People use excess balances to increase their purchases of …
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