The central bank sold Rs736.8 billion worth of short-term government papers at an auction on Wednesday, while yields turned flat.
The cut-off yield on a three-month market treasury bill stood.7500 percent, unchanged from the previous auction held on September.
The rupee depreciated.3 percent against the US dollar in the eight months to July.We see a 50 basis points increase in upcoming monetary policy meeting.In this context, the regulator is banking its hopes on the greater exchange rate asda promo code travel money flexibility, monetary management and increasing remittances, read the statement.The SBP revised up its consumer price inflation estimate for the current fiscal year to 6-7 percent from the previous range.5-6.5 percent mainly due to impact of rupee depreciation and the likely continuation of the twin deficits.The central bank is hopeful of achieving an 11-year high growth rate with inflation remaining under control.The bank also estimates that the average inflation rate for financial year 2017-18 will remain below the 6pc target.Analysts at Arif Habib Limited expect another rate hike of 100 basis points in the upcoming monetary policy, this is going to be third consecutive rate increase.SBP likely to push interest rate up by 50 to 100bps.Pakistan's central bank raised key interest rates by 100 basis points on 29th September 2018, citing rising inflation and large twin deficits.It, however, points to the high current account deficit which, combined with the high fiscal deficit, may affect medium-term stability of the economy.We expect the SBP to raise its policy rate by a further 100 basis points this month, Bilal Khan, a senior economist at Standard Chartered Bank said.Karachi: State Bank of Pakistan (SBP) may further increase key policy rate by 75-100 basis points in its monetary policy announcement scheduled for Saturday, September 29, 2018, analysts said on Thursday.In our base case, we see rupee/dollar exchange rate to crawl up to 134 and discount rate to reach nine percent by FY19 end, brokerage Alfalah Securities said in a report.However, growth in imports has also been high which has led to a current account deficit.8bn.Latest, solutions, languages, copyright 2018 trading economics, all Rights Reserved.No bids were received for the six and 12 months papers by the banks, the central banks data showed.External factors, such as higher international prices of commodities, (are) also likely to supplement the increasing trend in inflation, the minutes of a meeting of the SBPs monetary policy committee said.Interest Rate in Pakistan averaged.17 percent from 19, reaching an all time high.50 percent in October of 1996 and a record low.75 percent in May of 2016.The State Bank of Pakistan (SBP) on Friday announced to maintain how to win a dirt bike the interest rate at 6 per cent as it announced its monetary policy for the next two months.According to a statement released on their website, the SBP has decided to continue with the recently revised interest rate so that the effects of the change can accurately be ascertained.If this holds true, we will have missed an opportunity to speed up negotiations with the IMF with proof of our commitment to an inevitable period of austerity.
Conservative estimates peg the expected policy rate hike at 75 bps.
Furthermore, it seems like the money market has already incorporated the rate hike which is evident in the graph below that indicates discount rate hike is necessary to fulfill the gap of 60bps between 12-M T-Bills and Discount Rate.