{"id":22776,"date":"2011-07-30T22:40:00","date_gmt":"2011-07-31T02:40:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?guid=1388bb17b73dd41ea6a41c747f8f473e"},"modified":"2011-07-30T22:40:00","modified_gmt":"2011-07-31T02:40:00","slug":"state-bank-of-pakistan-cuts-rate-50bps-to-13-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/07\/30\/state-bank-of-pakistan-cuts-rate-50bps-to-13-50\/","title":{"rendered":"State Bank of Pakistan Cuts Rate 50bps to 13.50%"},"content":{"rendered":"<p><span class=\"Apple-style-span\" style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12px; line-height: 16px;\">The&nbsp;<a href=\"http:\/\/www.sbp.org.pk\/\" style=\"color: #3778cd; text-decoration: none;\">State Bank of Pakistan<\/a>&nbsp;unexpectedly dropped its discount rate 50 basis points to 13.50% from 14.00%.&nbsp; The Bank said: &#8220;The key parameter in this assessment is the outlook of inflation that indicates that average inflation in FY12 is expected to remain in line with the announced target. &nbsp;No adjustment in the interest rate would have entailed further tightening of monetary policy in real terms, which is not warranted given the decline in private investment.&#8221; &nbsp;The Bank also noted: &#8220;Pakistan&#8217;s economy is currently facing three broad challenges in the shape of persistence of inflation at a high level, falling private investment and low growth, and rising total debt due to a low tax to GDP ratio.&#8221;<\/span><\/p>\n<div><span class=\"Apple-style-span\" style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12px; line-height: 16px;\"><\/span><br \/><a name='more'><\/a><\/div>\n<div><span class=\"Apple-style-span\" style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12px; line-height: 16px;\">Pakistan&#8217;s central bank last held its <a href=\"http:\/\/www.centralbanknews.info\/2011\/05\/state-bank-of-pakistan-holds-discount.html\">discount rate unchanged<\/a> at 14.00% during its May meeting. &nbsp;Pakistan reported annual inflation of 13.92% in June this year, up from 13.23% in May, and 13.04% in April,<span id=\"ctl00_ContentPlaceHolder1_lblNewsDetailMain\">&nbsp;the Bank had previously commented that &#8220;the average CPI inflation for FY11 is likely to remain between 14 and 14.5 percent, which is lower than the central bank&#8217;s earlier projections,&#8221;. &nbsp;The Pakistani government announced an inflation target of 12 percent for FY 2012, with a desired path for inflation of 9.5% and 8% in the subsequent 2 years.<\/span><\/p>\n<p><a href=\"http:\/\/www.centralbanknews.info\/\" style=\"color: #3778cd; text-decoration: none;\" >www.CentralBankNews.info<\/a><\/span><\/div>\n<div class=\"blogger-post-footer\"><img width='1' height='1' src='https:\/\/blogger.googleusercontent.com\/tracker\/8290544642025682538-8694785618614220550?l=www.centralbanknews.info' alt='' \/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The&nbsp;State Bank of Pakistan&nbsp;unexpectedly dropped its discount rate 50 basis points to 13.50% from 14.00%.&nbsp; The Bank said: &#8220;The key parameter in this assessment is the outlook of inflation that indicates that average inflation in FY12 is e&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-22776","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=22776"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22776\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=22776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=22776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=22776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}