PSMA calls for review of interest rates in light of falling inflation

LAHORE: The Pakistan Sugar Mills Association (PSMA) has asked policymakers to reconsider existing interest rates in the country.

Stressing for the need to review policy rates in the light of falling inflation, Chairman of the Pakistan Sugar Mills Association (Central) Asim Ghani Usman said on Friday that inflation and interest rates are closely intertwined, generally moving in the same direction.

When inflation falls, it is typical for interest rates to be reduced as well, he observed.Given that the inflation rate in the country has now dropped to 9.6 percent, despite ongoing economic challenges, policymakers should review the current interest rates at the upcoming monetary policy meeting, according to Usman.He emphasized that a reduction of 3-4 per cent would be appropriate under the present circumstances.