KARACHI: The State Bank of Pakistan (SBP) to announce its first bi-monthly monetary policy of the new fiscal year on Saturday here, Geo News reported.
The central bank is expected to keep the current discount rate at 10 percent unchanged, the analysts predict.
Analysts said that the indicators like over $14 billion foreign exchange reserves, appreciation of rupees against dollar by 8 percent from the beginning of the current year and 71 percent reduction in local borrowings of the government during previous fiscal year suggest a cut in current discount rate, but IMF string to keep inflation in control forcing SBP to keep it unchanged at 10 percent.
Besides, some analysts suggest that the central bank in determining the discount rate should adopt a careful attitude in the backdrop of price-hikes of essential commodities during the month of Ramazan
On the other hand, some analysts are of the opinion that since the private sector during previous fiscal year availed Rs348 billion of loans—a positive indicator and if the central bank slashes the discount rate by ½ percent it would help promote the private sector development efforts.
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