SBP injects Rs142.6 billion in market

KARACHI: The State Bank of Pakistan (SBP) on Thursday injected Rs142.6 billion in the market through a one-day open market operation, a bank statement said.
The central bank offered Rs142.6 billion and the banks accepted the entire offer against a rate of return of 8.30 percent.
In recent times, the liquidity injections by the SBP have increased considerably relative to its past trends.
Noticing these unusual changes, various market analysts perceive the SBP liquidity management to be favouring the banks in making profit or supporting the government to meet its borrowing needs.
According to the central bank, its liquidity management operations aim at achieving monetary policy objectives of price stability so as to provide a facilitating environment for the economic growth.
In particular, the intermediate goal is to contain the overall monetary expansion (M2 growth) within safe limits; consistent with price stability objective.