sbp announces monetary policy 13 year low interest r

KARACHI: The State Bank of Pakistan on Saturday announced the new monetary policy for the next two months keeping interest rate at an all time low since 13 years.The central bank reduced interest rate by 0.5 percent and brought it down to eight percent.Experts were expecting a reduction of one percent.Despite a significant cut in interest rates during the current fiscal year, there has been no increase in loan acquisition by the private sector.On the other hand, government borrowing from the commercial banks has amounted to over one trillion rupees in eight months.