Move disappoints trade, industry

Barring foreign investors, local business leaders have expressed concern over the State Bank of Pakistan’s (SBP) decision to keep the policy interest rate unchanged at 11 per cent, arguing that the move could stifle investment, raise production costs, and delay economic recovery. While foreign investors largely supported the decision, domestic business groups criticised it as overly cautious, particularly in light of August’s 3pc inflation rate. The business community had been widely expecting a reduction to a single-digit interest rate. They argue that easing inflation and sluggish growth warrant a more accommodative monetary policy.