KARACHI – State Bank of Pakistan is likely to cut policy interest rates onfederal government willingness to do so, Media Report has suggested.
The Monetary Policy Committee of the State Bank of Pakistan is scheduled tomeet on September 16, 2019 to take a cautious decision on policy rate amidrising trends in the Consumer Price Index (CPI)-based inflation and thefederal government’s willingness to slash down the rate.
A monetary policy statement will be released through a press release on thesame day.
In August, capital market observed healthy inflows, while the inflow fromUS financial institutions in treasury bills amounted at $77 million.
Meanwhile, the outflow from UK financial institutions in treasury billsstood at $5.8 million, followed by net inflows at $71 million.
Recently, the government allowed non-resident Pakistanis to invest in thecapital market, whereas tax breaks facilitated addition of foreigninvestments in government securities.
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Moreover, the government has halted selling Rs40,000 bonds, leading toencashment, selling and conversion of the prize bond.
In the months of June and July, the selling and conversion of the prizebond amounted to Rs176 billion.
Earlier, the investment in Rs40,000 prize bonds clock at Rs258 billion.
