Karachi April 5 2023: On April 05, 2023, SBP raised PKR 2,248 billion through the auction of market treasury bills at all time high rates.
The government received total bids worth PKR 2,595 billion and the highest bids of PKR 2,232 billion for 3 Month T-bills followed by PKR 143 billion for 6 Months and PKR 220 billion for 12 Months.
Cut-off yields increased by 40 basis points for 12 Month T-Bills, while for 3 Months and 6 Months the cut-off remained unchanged,
The cut-off yield for 3 Months, 6 Months, and 12 Months paper settled at 21.9997 percent, 21.9789 percent, and 21.8898 percent, respectively.
At its meeting yesterday, the Monetary Policy Committee (MPC) decided to increase the policy rate by 100 basis points to 21 percent. The MPC noted that inflation in March 2023 rose further to 35.4 percent, and is expected to remain high in the near term. However, there are early indications of inflation expectations plateauing, albeit at an elevated level. The MPC views its decision as an important step towards anchoring inflation expectations around the medium-term target, which is critical for achieving the objective of price stability. The Committee further observed that Pakistan’s financial sector remains broadly resilient, while economic activity continues to moderate.
The government raised PKR 2,248 billion in the latest auction against a target of PKR 900 billion.
