SBP injected PkRs 690bn in banking system – Alfalah Securities Limited

Karachi, January 29, 2013 (PPI-OT): State Bank of Pakistan (SBP) has injected PkRs 690 bn in the banking system on Monday to meet the liquidity requirement of the banks through its reserve repo open market operation in the Treasury Bills and Pakistan Investment Bonds for four days against the offered amount of PkRs 726 bn.

According to Alfalah Securities Limited, the rate of return stood at 8.79% p.a. The higher lending to the government to finance the rising budget deficit is contributing to higher liquidity issues for the banks. The higher injection in the monetary system causes inflation to heat up which is termed negative for the economic growth and prosperity.

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