Business

SBP sells treasury bills worth Rs 1.06trillion

State Bank of Pakistan sold three month worth treasury bills worth Rs 1.06 trillion against Rs 975 billion target set by the central bank.
The State Bank set a target of Rs 975 billion whereas banks placed bids worth Rs 1.118 trillion for three months treasury bills while no interest shown has been in six months and one year bills.
SBP accepted bids worth Rs 1.05 trillion for three months at cut off yields of 5.99 percent.
The central bank to announce monetary policy most probably next week. The interest shown in smaller tenure hints that over the year period horizon, interest rate has been bound rise.
Several indicators showed that interest rate to go up –inflation has been over 4 percent since last two months and with rising trend witnessed petroleum products, inflation to go up further.
Moreover, with deprecation of Pak rupee in one go of five percent last month, rise in interest rate to help tame rupee.