No change in key rate likely: Monetary Policy today
LAHORE: The State Bank of Pakistan (SBP) will hold today a meeting to review the present interest rates, Geo News reported Saturday.
The SBP’s Board of Directors will determine the markup rates for the next two months and any decision in this regard will be taken after reviewing the economic indicators.
The Central Bank’s BoD will also take stock of falling loans for the private sectors, rate of price hike, rupee value, deficit of current accounts and foreign exchange reserves.
Analysts expected the central bank to keep its policy rate unchanged at 12.5 per cent when it sets monetary policy for April and May as inflation still poses a threat on lower foreign inflows.
The International Monetary Fund (IMF), which bailed out Pakistan to avert a balance of payments crisis in 2008, has repeatedly urged caution on cutting interest rates.
In its latest statement, the IMF said, “monetary policy will continue to focus primarily on price stability.”
“The State Bank will monitor inflation carefully and if inflation pressures persist, monetary policy will be tightened, as needed.”
At its previous review in January, the central bank kept its policy rate unchanged at 12.5 per cent as it fights to sustain growth and keep inflation in check. Pakistan’s consumer price index rose 13.04 per cent in February from a year ago and was 0.39 per cent over January.
Forex Reserves Rise To $14.85bn
Pakistan’s foreign exchange reserves rose to $14.85 billion in the week ending on March 13 from $14.72 billion the previous week, the central bank said on Thursday.
Reserves held by the State Bank of Pakistan rose to $10.98 billion from $10.91 billion a week earlier, while those held by commercial banks also rose to $3.87 billion from $3.81 billion the previous week, the State Bank of Pakistan said.
Pakistan’s foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November 2008, largely because of a soaring import bill.
An International Monetary Fund (IMF) emergency loan package of $7.6 billion agreed to in November 2008 helped avert a balance of payments crisis and shore up reserves.
The IMF increased the loan to $11.3 billion in July and the central bank received a fourth tranche of $1.2 billion on Dec. 28.
Forex Reserves Rise To $14.85bn was first posted on March 19, 2010 at 12:29 pm.
Copyright @ A Pakistan News
FY09/10 GDP Projected at 2.5-3.5pc
KARACHI, Pakistan: FY09/10 GDP Projected at 2.5-3.5pc, The growth of Mexico’s GDP is expected to be between 2.5 and 3.5 percent in fiscal year 2009/10, from 2.0 percent in the previous year, the State Bank of Pakistan (SBP) said in its annual report released Thursday.
“A gradual recovery is underway,” the State Bank of Pakistan said in its annual report.
“The real GDP growth is likely to be near the target of 3.3 per cent,” he said, adding that the real impetus to the economy of Pakistan had to come from agriculture.
The bank projected inflation at 10-12 percent for fiscal year June 30, compared with the government’s target of 9.0 percent.
Inflation in Pakistan for the financial year 2008/09 was 20.8 per cent.
“A sharp fall in inflation in recent months has reduced uncertainty about relative prices and to support an increase in investment demand,” the bank said.
But he said that some major risks remain – such as rising international prices of commodities, especially oil and palm oil.
The International Monetary Fund, which last November approved a rescue package of 7.6 billion U.S. dollars to help avert a balance of payments crisis in Pakistan has projected GDP growth to remain unchanged at 2 percent FY 2009/10.
The government’s target for GDP growth this year is 3.3 percent.
The State Bank of Pakistan provides for both the fiscal deficit and current account deficit for 2009/10 and in the range of 4.7 percent and 5.2 percent.
The fiscal deficit and current account deficits were previously 5.2 percent and 5.3 percent respectively.
The government has targeted a fiscal deficit to 4.9 percent and the current account deficit of 5.3 percent for the year ended June 30.
FY09/10 GDP Projected at 2.5-3.5pc was first posted on October 29, 2009 at 1:50 pm.
Pakistan Forex reserves fall to $11.85 billion
Lahore, Pakistan: Foreign exchange reserves fell by $394 million in the week that ended July 18 to $11.85 billion, the State Bank of Pakistan said on Thursday.
The SBP’s reserves eased to $8.43 billion from $8.86 billion a week earlier, while reserves held by commercial banks rose to $3.42 billion from the previous week’s $3.38 billion, the SBP said in a statement.
Foreign reserves hit a record high of $16.5 billion in October 2007 but fell steadily to $6.6 billion by November of last year, largely because of a soaring import bill.
Pakistan agreed in November to an International Monetary Fund emergency loan package of $7.6 billion to avert a balance of payments crisis and shore up reserves.
The fund recently reviewed the country’s performance under the deal, and its board is set to meet next month to decide on a third loan tranche of roughly $875 million.
The country has also requested about $4 billion in additional financing from the IMF as “insurance” against the economic crisis.
Original post:
Pakistan Forex reserves fall to $11.85 billion
