Karachi: The State Bank of Pakistan (SBP) on Tuesday notified the reduction of the national interest rate by 75 base points to 12.5 percent, a news source reported. As per the publication, the Karachi Stock Exchange (KSE) Index fell by 3.17 percent and closed at 32,616 points due to the novel coronavirus; despite an earlier prediction that a cut in policy rates would affect the KSE index positively.
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The business and traders’ community was expecting that the government would slice the interest rates by 2-3 percent to facilitate the community during the situation caused by the novel coronavirus . Karachi Chamber of Commerce and Industry (KCCI) President Agha Shahab Ahmed Khan stated that they had recommended that the interest rate be brought down to single digits. He said that the country’s economy was supported by revenue, and that the government could assist the traders and business community in order to improve revenue generation.
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Topline Securities Chief Executive Officer (CEO) Mohammed Sohail also recommended that the government should cut the interests rate and provide a positive stimulus to the economy. Additionally, he said that it would also rejuvenate the traders’ trust, which would also impact the economy in a better way.