SBP Governor urges collaboration for Islamic finance standardization
15:10
March 23, 2023
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March 23, 2023 (MLN): The government on Wednesday raised Rs1.14 trillion from the auction of market treasury bills, against a target of Rs900bn registering a hike in cut-off yield by up to 114bps to 21.99%, result data published by the State Bank of Pakistan (SBP) showed.
Amid the rising interest rate spree, the cut-off yield for 3, 6, and 12 months increased by 100, 114 and 50 bps to 21.99%, 21.99%, and 21.48%.
The total amount offered was Rs1.49tr out of which the SBP accepted Rs1.14tr. Of which, the SBP received bids worth Rs970bn for 3 months, Rs18.01bn for 6 months, and Rs152.58bn for 12 months.
Experts are of the view that the record hike in cut-off yields anticipated a further rate hike in the upcoming monetary policy which is due on April 4, 2023.
To note, the Monetary Policy Committee (MPC) of the SBP in its meeting held on March 02, 2023, decided to raise the policy rate by 300bps to 20% to arrest the inflationary pressure.
The outcome of the meeting was in line with the market expectations where the analyst fraternity believed that the monetary policy committee of SBP will go for an aggressive hike of 200-300 bps to unlock IMF deal.
