UBG Patron-in-Chief Demands Reduction in Interest Rate to 6%
As the Consumer Price Index (CPI) dropped significantly to just 3% in August 2025, UBG Patron-in-Chief SM Tanveer has called for a reduction in interest rate to 6%. Tanveer emphasized that with inflation under control, maintaining the current policy rate of 11% is no longer justified, as it is choking industrial and economic growth due to the wide real interest rate gap. He urged the State Bank to reduce the interest rate to revive industrial growth, support job creation, boost export competitiveness, reduce the government debt burden, and encourage investment and business confidence.
Key Takeaways:
- SM Tanveer, UBG Patron-in-Chief, has demanded a reduction in interest rate to 6% due to a significant drop in CPI to 3% in August 2025.
- The current policy rate of 11% is unjustified, as it is causing a wide real interest rate gap, which is affecting industrial and economic growth.
- Tanveer argued that reducing the interest rate to 6% would have numerous benefits, including reviving industrial growth, supporting job creation, and boosting export competitiveness.
- He urged the State Bank to immediately take action to reduce the interest rate and called on chambers of commerce, trade associations, and business leaders to stand united and demand a growth-oriented and rational economic policy.
- Tanveer emphasized that the eyes of the business community and the nation are fixed on policymakers, expecting them to make decisions that would drive economic growth and development.
Statistics:
- Consumer Price Index (CPI) dropped to 3% in August 2025.
- Current policy rate: 11%
- Proposed interest rate reduction: 6%
- Potential benefits of reducing interest rate:
+ Revive industrial growth
+ Support job creation
+ Boost export competitiveness
+ Reduce government debt burden
+ Encourage investment and business confidence
Sources:
- SM Tanveer, UBG Patron-in-Chief
- Statement by SM Tanveer in a press release