KARACHI: State Bank of Pakistan (SBP) on Wednesday sold Rs40.44 billion treasury bills at cut-off yield of 7.75 percent above 25 basis points than the key policy rate of 7.5 percent.
The SBP has set Rs100 billion target for today’s auction of Market Treasury Bills (MTBs) in 3-, 6- and 12-month instruments. However, the SBP received bids of Rs45.44 billion in 3-month papers.
Analysts said that banks were hoping further increase in interest rate in the coming monetary policy due to higher inflation and depreciation in local currency.
The SBP in the last monetary policy on July 14, increased policy rate by 100 basis points to 7.5 percent.