Karachi2 December 17, 2021: In first of its kind, Pakistan’s Central Bank conducted a 7 and 63-days OMO (injection) today, as per data released by State Bank of Pakistan.
SBP offered amount was Rs1,086bn in 7-days and Rs753bn in 63-days. SBP picked Rs1,086bn at 9.82% in 7-days and Rs689bn at 9.90% in 63-days.
This is the first time 63-days OMO was conducted by SBP.
“We believe this is to give market a signal of stability” says report published by Topline Securities.
A L S O || R E A D
Weekly Inflation Is About To Touch 20 Percent: PBS
To recall SBP in its recent Monetary Policy Statement (MPS) said that across all tenors, secondary market yields, benchmark rates and cut-off rates in the government’s auctions have risen significantly. The MPC noted that this increase appeared unwarranted. In spite of that, yields in last T-Bill auction remained the same while in secondary markets it went up by 20-30bps after the auction.
Yields in money markets have are down by 10-40bps to 10.27 percent, 11.07 percent and 11.35 percent, for 3M, 6M and 12M papers, respectively as per data published by MUFAP.
The research report published by Topline Securities stated that “We think overall economic numbers especially CPI, Current Account Deficit, FX reserves along with timings of IMF program resumption will remain key determinant of interest rate movement going forward. SBP’s OMO injections will also play a key role.”
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