Monday, 26 September 2016
There was no surprise in the Monetary Policy Statement (MPS) as status quo was maintained for another two months at 5.75 percent. The SBP sees a comfortable liquidity situation; but it remained silent on the fact that government borrowing from the central bank is back in business. The toll stood, on cash basis, at Rs874 billion in the first nine weeks of the fiscal year and is Rs1200 billion now. According to the SBP act, it has to be net zero by the quarter end ie the position ought to be reversed in three weeks.