SBP governor says more time required to reduce interest rate

FAISALABAD: The governor of the State Bank of Pakistan (SBP), Dr Reza Baqir, has hinted that more time will be required for making a reduction in the interest rate of the country, ARY News reported on Thursday.

Reza Baqir, while addressing an event of the central bank in Faisalabad, however, said that improvements are being witnessed in the stock market but it will take more time to reduce the interest rate.

He said that people have raised concerns over increasing US dollar rates. He added that the current interest rate is standing at 13.25 per cent which had been maintained at 17  to 18 per cent in past.

The governor reiterated that it is the top priority of the central bank to cooperate with exports.

Read: SBP’s reserves rise $120 million to $9.23bn

On December 14, Reza Baqir had said that the country’s foreign reserves are increasing, today’s situation is far better as compared to the past.

Speaking to journalists after attending a seminar in Karachi, Reza Baqir said people are now taking interest in saving.” Masses have changed their currency accounts into savings”, he continued.

The SBP governor said the economic situation of the country is improving with every passing day, the decision to change exchange rate now paying fruits.

Reza Baqir said Pakistan was badly affected due to terrorism and added that Islamabad working to fulfil the requirement of the Financial Action Task Force (FATF), which are in favour of Pakistan.