BISP is not too willing on the further slashing of interest rates other than 50 basis points which had been signaled late in the previous years in spite of impact of the outbreak which has globally taken place of the coronavirus disease.
The governor of BISP, Benjamin Dikono has said that the monetary authorities are in no hurry of cutting the interest rates again after they resumed their easing cycles with a cut of 25 bps rate on the last 6th of February.
He added that they have indicated already that they are going to reduce the rate of interest rate by 50 basis points. Therefore, they have done the 25 bps which may mean that they are in the need to accelerate. They are planning for doing that in the second half of year in the form of an attempt which was preemptive for the supporting of the market in the lowering of the borrowing cost to the companies and boosting the activity in the economy.
This had brought the rate cuts as a whole cumulatively to a level of 100 bps after the month of May in the previous year and it had partially been unwinding the cycles which saw a jump in rates by 175 bps in the year 2018.
The chief had said that presently, there wasn’t a need for the monetary easing beyond what has already been done as of now.
The next meeting for setting the rates of the board in the quarter has been set for the 19th of March while these meetings take place on 21st of May and June for the second quarter.
BSP chief also said that there was no need for deploying any other tools.