State Bank Of Pakistan Reduced By 100 Points
August 15, 2009 by Trend PK
Filed under Breaking News
PAKISTAN, ISLAMABAD: State Bank of Pakistan has slashed the discount rate by 100 basis points.
At a press conference here Saturday, Governor SBP Syed Saleem Raza announced the monetary policy.
He announced that the SBP has decided to slash the discount rate by 100 basis points. “The SBP has cut the discount rate by one percentage points from the current 14 per cent,” Raza said.
The governor said GDP ratio reaches 2.1 pc. He said foreign exchange reserves improved sharply and stood at $9.1 billion.
The SBP has cut the discount rate by one percentage points from the current 14 per cent. It had cut the rate by one percentage point in April this year from 15 to 14 per cent.
The central bank also changed the interest rate mechanism to bring transparency in Repurchase Offered (repo) rate as well as reverse repo rate as recommended by the International Monetary Fund (IMF).
He said that IMF has appreciated Pakistan’s economic performance, adding that due to the inflation the export dropped by 5.9 pc.
“In recognition of the positive macroeconomic developments and to provide impetus for growth, while remaining entirely aware and not underestimating risks and challenges, the state bank has decided to cut the policy rate by 100 basis points,” Raza told a briefing.
The frequency of monetary policy announcements would be increased from four to six times a year and would be made in the last week of September, November, January, March, May and July, he said.
