Home / Tag Archives: monetary

Tag Archives: monetary

Monetary Policy: likely impact on inflation and interest rate

  In the last Monetary Policy decision, discount rate has been maintained at 10 percent against expectations that interest rate will reduce at the back of reduction in CPI, average CPI recorded at 8.6 percent in FY14. With declining trend of inflation and projections of SBP for single digit inflation, discount rate is expected to reduce further. For FY15, CPI is expected to remain between 7.5 percent and 8.5 percent. …

Read More »

Impact of low markup rate on Pakistan’s economy

  Since the last monetary decision was made in November of 2014, key macroeconomic indicators have shown improvement. CPI inflation and its expectations have continued to follow a downward trajectory and in the months of November and December 2014, the trade deficit has also declined, however, it did increase in the first half of the fiscal year 2015 in comparison to the same period of FY 2014. Additionally, inflows of …

Read More »

Formulating a realistic monetary policy

  The monetary policy has been misused to a large extent. There was exploitation of the depositors’ money by the rich and powerful class in the absence of an effective central bank. The government enacted laws to give autonomy to the SBP in conducting an independent monetary policy in coordination with, rather than in subordination to fiscal policy, and to make the SBP the exclusive regulatory authority over the banking …

Read More »

Digital financial services can help grow women monetary means

  Despite encouraging advancements in the number of first time bank account holders, a startling gender gap persists in financial inclusion as a result of a variety of barriers to access across the developing world. Bringing women into the formal financial sector not only empowers them directly but also leads to welfare gains for the entire household and the community at large. This article lays out the empirical evidence linking …

Read More »