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Monday, July 26, 2010

Monetary Policy: Discount rate will be held Constant

Monetary Policy is to be announced on 30th July by State Bank of Pakistan (SBP). It should be remembred that SBP now announced Monetary Policy after every two months.
As we all know current discount rate (federal funds rate in USA) is 12.5% and the consensus among analysts is that it will again be unchanged for two more months.
It is important to note that discount rate is still on a higher side but SBP is cautious to bring it down because of concern of Inflation.
There is no impact of this upcoming Monetary Policy on Stock Market because the outcome of the same is already discounted and expected in the Market.

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