108,322 and counting - Bulls' stampede continues amid hopes of policy rate cut
Business
Hopes for cut in policy rate were fuelled by a significant decline in inflation rate
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) continued its record run on Thursday as it crossed 108,000 points after gaining 3,200 points amid hopes of cut in policy rate due to declining inflation in the country.
It comes amid high-flying expectations that the State Bank of Pakistan (SBP) would further decrease the key policy rate. The Monetary Police Committee (MPC) of the central bank is set to meet on Dec 16.
The trading on Thursday closed at 108,322 points.
The hopes for cut in policy rate were fuelled by a significant decline in inflation rate in Pakistan as it was recorded at 4.9 percent in November, the lowest reading in the six and half years.
The Pakistan Bureau of Statistics said the inflation in October this year was 7.2pc.
The lower inflation rate is likely to result in more monetary easing, leading to further decline in cost of capital for businesses and industries.
