State Bank of Pakistan likely to cut policy interest rates: Report

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State Bank of Pakistan likely to cut policy interest rates: Report

KARACHI – State Bank of Pakistan is likely to cut policy interest rates on federal government willingness to do so, Media Report has suggested.

The Monetary Policy Committee of the State Bank of Pakistan is scheduled to meet on September 16, 2019 to take a cautious decision on policy rate amid rising trends in the Consumer Price Index (CPI)-based inflation and the federal government’s willingness to slash down the rate.

A monetary policy statement will be released through a press release on the same day.

In August, capital market observed healthy inflows, while the inflow from US financial institutions in treasury bills amounted at $77 million.

Meanwhile, the outflow from UK financial institutions in treasury bills stood at $5.8 million, followed by net inflows at $71 million.

Recently, the government allowed non-resident Pakistanis to invest in the capital market, whereas tax breaks facilitated addition of foreign investments in government securities.

Moreover, the government has halted selling Rs40,000 bonds, leading to encashment, selling and conversion of the prize bond.

In the months of June and July, the selling and conversion of the prize bond amounted to Rs176 billion.

Earlier, the investment in Rs40,000 prize bonds clock at Rs258 billion.

Economy