APTMA urges further rate cuts as real interest rate hits regional peak

MG News | August 05, 2024 at 05:13 PM GMT+05:00

0:00

August 05, 2024 (MLN): All Pakistan Textile Mills Association (APTMA) has called for an immediate need to cut interest rates further to ease the cost of borrowing and encourage growth in the country.

The recent inflation figures for July, which came in at 11.8% year-over-year (YoY) despite a monthly price increase, have significantly improved the real interest rates in the economy.

With the policy rate currently at 19.5%, the real interest rate stands at 8.41%, the highest in the region.

In comparison, the next in line for positive real interest rates are China and India, with rates of 3.21% and 1.4%, respectively.

Meanwhile, countries like Bangladesh, and Turkey currently face negative interest rates.

	Pakistan	China	India	Vietnam	Bangladesh	Turkey
Inflation	11.10%	0.20%	5.10%	4.40%	9.70%	61.80%
Policy Rate	19.50%	3.40%	6.50%	4.50%	8.50%	50%
Real Interest Rate	8.40%	3.20%	1.40%	0.10%	-1.20%	-11.80%

Hence, APTMA has demanded that the government embrace further rate cuts as Pakistan currently stands in a positive position.

Especially after the government has introduced royalties and taxes on various sectors, only further cuts can help boost the economic sectors in the country.

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	168,062.19 306.60M	0.83% 1384.50
ALLSHR	101,185.19 733.66M	0.87% 876.07
KSE30	51,209.68 175.50M	0.70% 354.51
KMI30	241,745.47 157.27M	1.02% 2429.55
KMIALLSHR	66,133.42 343.83M	1.06% 696.11
BKTi	45,383.12 49.13M	-0.02% -8.11
OGTi	33,378.35 27.38M	1.59% 521.29

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	85,520.00	91,660.00 84,120.00	-5545.00 -6.09%
BRENT CRUDE	63.17	63.82 62.69	0.79 1.27%
RICHARDS BAY COAL MONTHLY	91.00	0.00 0.00	0.50 0.55%
ROTTERDAM COAL MONTHLY	97.55	97.70 97.35	-1.10 -1.12%
USD RBD PALM OLEIN	1,016.00	1,016.00 1,016.00	0.00 0.00%
CRUDE OIL - WTI	59.33	59.97 58.83	0.78 1.33%
SUGAR #11 WORLD	14.74	15.20 14.73	-0.47 -3.09%