KARACHI: Central banks of the world are responding to negative impact of coronavirus impact and they are reducing interest rate, said a top official of the State Bank of Pakistan (SBP).
Syed Murtuza, Deputy Governor, SBP while addressing at a seminar on impact of coronavirus on economy organized by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday.
The deputy governor said that due to deterioration in economy the central banks of many countries had reduced interest rates. He said that after Federal Reserve of the US the central banks of UK, Canada and Australia had also brought down the discount rates.
Murtuza Sayed said that the spread of coronavirus disease (COVID-19) was different with every changing day.
The cases in China are now on decline and situation is improving.
He hoped that the bad situation would be improved by May this year. However, this epidemic may cause difficult economic situation for at least one quarter, he added.
He said that according to the IMF the coronavirus would cause decline in world economic growth in 2020.
He said that there was opportunity for Pakistan to improve exports in this situation. However, he said that Pakistan economy may have repercussions of world economic slowdown.
