Business

‘Rate hike to increase credit cost’

'The SBP’s interest rate affects all other interest rates in the economy'

Our Correspondent October 02, 2018 Less than a minute read

'The SBP’s interest rate affects all other interest rates in the economy' PHOTO: FILE

ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) President Ahmed Hassan Moughal has said that the hike of 100 basis points in policy rate in one go by the State Bank of Pakistan will push up credit cost for the private sector and hamper the growth of business activities. “The SBP’s interest rate affects all other interest rates in the economy, making bank borrowing more expensive for the private sector,” he said. “It will translate into further slowdown in the pace of economic activity, especially at a time when Pakistan badly needs to accelerate economic growth for sustainable development.” He called on the government to reverse the interest rate hike so that the private sector could get easy credit for expansion and growth.

Published in The Express Tribune, October 2^nd, 2018.

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