OMO: SBP injects Rs996bn into the market at 15.09% rate of return

August 5, 2022 (MLN): The State Bank of Pakistan (SBP) on Friday injected Rs996 billion into the money market through reverse repo purchase.

As per the SBP statement, of the Rs996bn injected amount, Rs157.75bn was injected for 7 days while the remaining Rs838.25bn was for 63 days at a 15.09% rate of return.

For 7 days injection, 7 bids were placed by participants ranging between 15.09% to 15.22% to raise Rs157.75bn. While for 73- days, 26 bids were received ranging between 15.09% to 15.18%. Central Bank accepted all bids worth Rs996bn.

The last time SBP conducted a 63-day-long OMO was on July 29, 2022, where it injected Rs1.19 trillion into the market. SBP usually conducts longer tenure OMO to ease liquidity constraints of banks and bring down secondary market yields.

To note, SBP’s monetary policy is scheduled for August 22, 2022, wherein the Central Bank is expected to increase the policy rate to arrest the sharp rise in consumer prices and slow down the overheated economy.

At present, the policy rate stands at 15%.

Copyright Mettis Link News