RCCI calls for 4% interest rate cut

Author: DNA

The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged the Government of Pakistan to lower interest rates by four percent. Saqib Rafiq, President RCCI in a statement said that the year-over-year (YOY) inflation in August 2024 was 9.6 percent as opposed to 27.4 percent in August 2023. Also, the rating agency, Moody’s has recently upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt rating to Caa2 from Caa3. Saqib Rafiq further remarked that with inflation dropping to the lowest level in three years, there was a strong justification for reduction in the policy rate. He said that Pakistan’s economy is currently facing a critical juncture, with a slowing GDP growth rate, a widening trade deficit, and decreasing foreign exchange reserves. The country’s economic growth has been hindered by high interest rates, which have increased the cost of doing business, reduced investment, and discouraged entrepreneurship. A reduction in interest rates will help stimulate economic activity, increase investment, and promote entrepreneurship, ultimately leading to job creation and economic growth, he added.

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