Pakistan’s central bank cut its key discount rate to 8.5 percent from 9.5 percent on Saturday, in line with analyst expectations and citing lower inflationary pressure due to falling global oil prices.
Governor, State Bank of Pakistan, Ashraf Wathra said the new rate would be in place for two months until the next central bank meeting to discuss further policy.
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“Keeping in view the declining inflation due to falling international oil prices, (the) central bank has decided to lower the discount rate,” Wathra said in televised remarks.
Business leaders had earlier called on the central bank to ease monetary policy to encourage private sector investment and accelerate economic growth.
The increase in the discount rate will help lead to an economic revival as people will use their liquid assets to invest in different sectors of teh economy and that in turn will lead to greater employment opportunities as the macro level.
