SBP reduces interest rate by 150bps to 11 percent

KARACHI (92 News) – The State Bank of Pakistan has reduced the interest rate by 150 basis points, bringing it to 11 percent from 12.50 percent. The SBP spokesman said that the interest rate had been reduced keeping in view the current economic situation of the country. He said that the policy rate has been reduced by 2.25 percent in a week. “Globally the coronavirus has severely increased, causing major disruptions to economic activity and the IMF has also significantly downgraded its global growth outlook for 2020 from 3.3 percent growth previously to below zero. These global developments have also led to a sharp fall in international trade. This is expected to lead to noticeable slowdown in the domestic demand,” he added. The SBP spokesman said that the SBP is in the process of taking necessary regulatory measures in coordination with banks to address pressures on cash flows of borrowers affected by coronavirus related disruptions through facilitating deferment and restructuring of their loans. “The announcement of these measures is expected soon and will complement the action being taken by the MPC on interest rates today,” he added.