KARACHI/ISLAMABAD: The State Bank of Pakistan (SBP) on Tuesday slashed the interest rate by 1.5%, taking it down to 11%, in a bid to facilitate exporters and businesses who seek loans from commercial banks to run operations.
“The global economy has been hit hard by the coronavirus, with the pandemic causing several businesses, including restaurants, hotels, airlines and manufacturing businesses to record losses in billions,” the SBP said in a press release.
In a tweet, it said: “MPC has decided to cut the policy rate by a further 150 basis points to 11 percent.”
“It noted considerable uncertainty about how the Coronavirus outbreak would impact the global economy and Pakistan,” it added.
SBP had previously stated that it had taken various policy measures to protect the public in view of the forthcoming potential economic impact during the COVID19 outbreak.