Pakistan holds rate after IMF warning
Date
1/18/2014 4:34:10 AM
(MENAFN- Khaleej Times) The State bank of Pakistan (SBP) kept the discount rate at 10 per cent, Governor Yaseen Anwar told reporters in Karachi on Friday. Fourteen of 16 analysts in a Bloomberg News survey predicted the decision, with two expecting an increase of 50 basis points
The IMF faulted central bank authorities this month for failing to do enough to prevent reserves from dwindling. The central bank has raised the benchmark interest rate by 100 basis points since the IMF approved a $6.6 billion loan in September to bolster an Economy suffering from power shortages and a Taliban insurgency
"The decision may upset the IMF, which wants the central bank to play a role to control inflation and reduce the deficit," said Yawar Uz Zaman, a senior analyst with Alternate Research in Karachi
"This may also impact the next quarterly tranche we receive from the IMF, meaning they could hold the installment and even impose further restrictions on us.
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