Bulls’ stampede continues amid hopes of policy rate cut

– The Pakistan Stock Exchange (PSX) continued its record run on Thursday as it settled at 106,123 points after gaining over 1,000 points amid hopes of a policy rate cut due to falling inflation in the country. The State Bank of Pakistan (SBP) will cut the key policy rate further. The central bank’s Monetary Police Committee (MPC) is scheduled to meet on December 16. Significant reduction in inflation rate in PakistanExpectations of a policy rate cut from 2018 to 2018 have been fueled as the rate was recorded at 4.9% in November, the lowest rate ever. In six and a half years. Pakistan Bureau of Statistics said that the inflation rate was 7.2 percent in October this year. A lower inflation rate is likely to result in more fiscal spending. Liberalization further reduces the cost of capital for businesses and industries.