Arab Today, arab today pakistan rate cut signals pressure on central bank
Last Updated : GMT 02:14:22
Arab Today, arab today
Arab Today, arab today

Pakistan rate cut signals pressure on central bank

Arab Today, arab today

Arab Today, arab today Pakistan rate cut signals pressure on central bank

Islamabad - Arabstoday

Pakistan\'s unexpected interest-rate cut, almost three weeks after a governor resigned blaming state spending for inflation, shows the pressure the central bank faces from the government to reduce borrowing costs. The State Bank of Pakistan lowered the discount rate to 13.5 per cent from 14 per cent, Acting Governor Yaseen Anwar said at a news conference in Karachi on Saturday, citing a slower inflation forecast for the move. None of the 11 economists in a Bloomberg News survey predicted the decision. Anwar said the government has committed to ‘zero borrowings\' from the central bank and its access to funds from commercial lenders needs to be \"monitored closely to assess potential risks\". Growing public debt and living costs have fanned Pakistan\'s 10-year government bond yields to the highest level after Greece, according to data compiled by Bloomberg. Article continues below \"There can be political pressure on the central bank since it is still not empowered by law to make independent decisions,\" said Sa\'ad Khan, a Karachi-based economist at brokerage Arif Habib Ltd. \"The government wanted interest rates to come down which was contradictory to the central bank\'s stance throughout the last fiscal year.\" Zero borrowings Pakistan\'s 10-year government bond yields have climbed 1.04 percentage points in the past year to 13.95 per cent, compared with 14.12 per cent in Greece, according to Bloomberg data. The currency, which has weakened 1 per cent in the period, fell 0.1 per cent to 86.65 against the dollar at 10:40am in Karachi. Prime Minister Yousuf Raza Gilani\'s government named Anwar, a deputy governor since March 2007, as the central bank\'s acting chief after Shahid Kardar resigned on July 12. Average inflation in the year that began July 1 is forecast to be 11 per cent or 12 per cent, Anwar said, compared with 13.92 per cent in the previous year. Consumer prices in Pakistan climbed 13.1 per cent in June, the most after Vietnam, among the 17 nations in the Asia Pacific tracked by Bloomberg. Kardar blamed increased government borrowing for inflation and kept the central bank\'s policy rate, one of the highest in the world, unchanged since January this year after raising it in September and November by half a percentage point. Kardar said his differences with the government were impeding the central bank\'s autonomy and ability to ensure \"prudent\" monetary decisions. Moody\'s Investors Service said his exit underscores the \"discord\" in policy leadership. The government has \"expressed its commitment to continue with a stance of zero borrowings from SBP in yearly flow terms in financial year 2012, which bodes well for anchoring inflation expectations,\" according to a statement from the central bank.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today pakistan rate cut signals pressure on central bank Arab Today, arab today pakistan rate cut signals pressure on central bank

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today pakistan rate cut signals pressure on central bank Arab Today, arab today pakistan rate cut signals pressure on central bank

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Tillerson heads to Gulf, downbeat

GMT 09:23 2017 Friday ,20 October

Tillerson heads to Gulf, downbeat
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Shery Adel happy for Egypt’s qualification

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday