Pakistan Central Bank Governor Ahmad on Rate Cut

The video discusses a recent monetary policy decision to cut interest rates by 100 basis points, citing favorable inflation trends and external account improvements. The speaker addresses concerns about commodity prices, currency stability, and debt rollovers, emphasizing confidence in the current economic situation despite potential challenges from global trade policies and the new Trump administration. The discussion includes the impact of tariffs, currency market stability, and international debt relations, highlighting the country's economic resilience and strategic planning.

What was the main reason for the recent policy rate cut by the Monetary Policy Committee?

• Increase in foreign investments

• Favorable trends in external account and inflation

• Pressure from international markets

• Decrease in government spending

How much did the inflation rate decrease from May 2023 to December?

• From 40% to 15%

• From 25% to 5%

• From 38% to 4.1%

• From 50% to 10%

What factor is providing flexibility for further rate cuts according to the speaker?

• Stable employment rates

• High foreign reserves

• Increased government revenue

• Positive short-term real interest rates

What is the current status of the currency market as discussed in the video?

• Declining rapidly

• Stable with narrow trading bands

• Experiencing a significant appreciation

• Highly volatile with large fluctuations

What has been done to improve the performance of exchange companies?

• Enhanced monitoring and oversight

• Increased government subsidies

• Reduction in foreign exchange reserves

• Privatization of exchange companies

How does the speaker view the impact of protectionist policies on trade?

• As manageable with no major negative impact

• As beneficial for local industries

• As having no impact at all

• As a major threat to the economy

What is the expected amount of debt rollovers for the current fiscal year?

• $10 billion

• $5 billion

• $16 billion

• $26.1 billion