'SBP should consider the country's uncertain inflation outlook as well as the growing pressure on its currency'KARACHI: Central banks around the world are getting aggressive with their rate cuts. With the developed world heading towards negative interest rates, Pakistan is currently sporting a 13.25pc policy rate following a cycle of monetary tightening that ended in June 2019, after which the policy rate has remained stable. As per the analysis of financial institutions in Pakistan, two out of twenty-four expect the policy rate to remain unchanged. With the full extent of coronavirus unknown to the markets, and the decline in oil prices further accelerated by a price war, the future dynamics are uncertain. Textile millers and economic experts on Tuesday had urged the government to reduce the interest rate, currently at 13.25pc, to a single digit.

Source: Pakistan Today March 13, 2020 15:45 UTC