SBP Cuts Profit Rates on Savings Accounts Certificates
According to the National Savings Department, the profit rate for savings accounts has been reduced from 16% to 13.5%, representing a decline of 250 basis points. This adjustment aligns with the overall revision of interest rates for certain savings schemes.
In addition to the changes in savings account rates, the profit rates for regular income certificates and defense savings certificates have also been lowered. The profit rate for regular income certificates has decreased by 10 basis points, now standing at 12.1%.
Furthermore, the profit rates for short-term savings certificates have also been reduced, although specific details have not been provided.
SBP cuts policy rate by 250bps to 15pc
The department has also revised the profit rates for other schemes, including the Savings Account, Sarwa Islamic Term, and the Islamic Savings Account.
The profit rate for Islamic Savings Accounts has been lowered by 72 basis points, now at 10.44%.
These modifications, particularly concerning Islamic Savings accounts, reflect a focus on macroeconomic objectives rather than bolstering these schemes, especially in the context of declining interest rates and rising inflation.
These reductions in returns are likely to impact savings-oriented investors; however, it is essential to consider the broader economic landscape, where the government is striving to manage inflation and interest rates. With the potential for further reductions in the SBP key policy rate, these changes may be viewed as part of a more extensive strategy aimed at fostering economic recovery.
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