Lahore: S.M. Tanveer has called for a significant reduction in interest rates in response to a decrease in the Consumer Price Index (CPI) for November 2024. The Patron-in-Chief of the United Business Group (UBG) has urged the government to lower the policy rate by 500 basis points to facilitate economic expansion.
According to United Business Group, the CPI inflation rate dropped to 4.9% year-on-year in November 2024, down from 7.2% in the previous month. S.M. Tanveer argued that such a reduction in the policy rate would bring bank markup rates into single digits, thereby increasing the accessibility and affordability of loans for businesses and consumers. This, he suggested, would encourage investment and stimulate economic activity.
Tanveer remarked that the decline in CPI reflects progress in economic stability and highlights the success of recent policy initiatives. He emphasized that the actual inflation rate outperformed forecasts, indicating the effectiveness of economic planning and the resilience of the business sector.
He further noted that inflation is a crucial economic indicator impacting all societal segments. The decline not only suggests a healthier economic environment but also offers relief to citizens by lowering living costs and boosting purchasing power.
Tanveer affirmed that the United Business Group, along with BMPP, remains committed to supporting policies that foster economic growth and stability. He underscored their commitment to maintaining and enhancing these achievements through collaboration with the government, industry stakeholders, and international partners.
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