Monetary policy: Rate cut will help industry, says LCCI chief

Says reduction in interest rate was need of the hour

KARACHI:

Lasbela Chamber of Commerce and Industry (LCCI) President Yakoob Karim expressed his satisfaction over reduction in discount rate by the State Bank of Pakistan (SBP) to the tune of 50 basis points.

In a statement on Tuesday, he said that reduction in interest rate was need of the hour, as the industry has become extraordinarily overburdened due to massive input cost.

“The central bank has taken decision in the right direction,” he said. “The SBP should also slash the discount under the Export Refinance Scheme considering the ease in inflationary trend. A significant cut will send a positive message to the investors.”

The LCCI chief was of the opinion that in order to revive the economy, the government should pass on the benefits of the latest fall in commodity prices in the international market; otherwise there would be no major impact of the latest cut on the industry. 

Published in The Express Tribune, March  25^th,  2015.

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