Sunday, October 10, 2010

Interest rates

Recently the State Bank of Pakistan increased interest rates, which is likely to fuel inflation even more. The government should learn from the Bank of Japan which has decided to set the interest rate from zero to 0.1 per cent, "to inject life into a faltering economy". And this is not the first time it has done so. Earlier, the interest rate had been zero for five years from 2001 to 2006. I know it is highly unlikely that our government will even consider what must be, in its opinion, a bizarre proposal, but no harm in trying.

Shakir Lakhani

The News, October 10, 2010