SBP reduces interest from 9.5 to 8.5 per cent
Downward inflation target has also been reduced from projected 8.5 to 5.5 per cent.
State Bank of Pakistan has reduced interest from 9.5 to 8.5 per cent.
This was announced by State Bank Governor Ashraf Wathra at a news conference in Karachi on Saturday evening.
He said the Bank has also revised downward inflation target for the current financial year from projected 8.5 to 5.5 per cent.
The Governor said the inflation is coming down due to reduction in oil prices and its impact on products, services and transportation.
He said inflation rate in the first six months of the current financial year remained at 6.1 per cent and in the last month 4.3 per cent.
He also anticipated increase in production due to increase in demand for consumer goods as a result of delcine in oil prices.
Ashraf Wathra said reduction in oil prices have benefitted economy of the country but FBR revenues are likely to be affected due to this factor.
He also expressed the confidence that the momentum of growth in agriculture sector witnessed during last financial year would continue during current fiscal year.