SBP injects Rs610bn into market

KARACHI: The State Bank of Pakistan (SBP) injected another Rs610 billion into the market through a 7-day open market operation on Friday.
The central bank offered Rs610 billion and the banks accepted the entire offer against a rate of return of 8.28 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 favoring the banks in making profit or supporting the government to meet its borrowing needs.
According to the SBP, its liquidity management operations aim to achieve monetary policy objectives of price stability so as to provide a facilitating environment for economic growth. In particular, the intermediate goal is to contain the overall monetary expansion (M2 growth) within safe limits consistent with price stability objective.