AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, December 12, 2012 (PPI-OT): State Bank of Pakistan (SBP) is reported to announce the monetary policy statement on December 14, Friday.
According to Alfalah Securities Limited, the November CPI inflation is well below the discount rate of 10.0% which provides ample room for a significant rate cut which may be only partially passed on due to IMF’s concerns on the external side. Therefore, Alfalah Securities Limited expects the discount rate may be lowered by 50-100 bps in the upcoming monetary policy announcement.
The market is expected to be influenced by the announcement expectations. The market may pick up momentum particularly in highly leveraged company’s stocks like in case of cement and textile sectors, since they would reap higher benefit, in case the discount rate is cut by 100 bps or vice versa.