Pakistan Economy_SBP moving interest rate needle by 25bps, (AKD Daily, Sep 21, 2021)
AKD Daily
Pakistan Economy: SBP moving interest rate needle by 25bps,
- In yesterday’s meeting, the Monetary Policy Committee (MPC) of the SBP delivered a 25bps hike in policy rate to 7.25% - the third Asian Bank demonstrating the need to begin tapering-off accommodative policies as the country’s economic recovery becomes more entrenched (FY22 GDPg forecast at 5%).
- The SBP noted that demand-side pressures have become more noticeable since the last MPC where imports have surged 67.7%YoY in 2MFY22 to US$11.4bn, flaring up concerns on external account and resulting in PkRUS$ parity depreciating by 4.6% since last MPC meeting.
- The rate increase was against our expectation of Status Quo, where by moving the interest rate needle, the Central Bank has given credence to strong economic performance carrying through in FY22, while suggested gains achieved on external side are likely to remain intact, along with currency consolidating at current levels.
- With further monetary policy interventions not being ruled out, we expect return of long-gone interest in Banks where we like mid-plays given their higher exposure to lending arrangements. IMF review would be the key near-term checkpoint for market’s performance while we advocate building positions in Techs and Textiles.
AKD Research
National Bank of Pakistan (the Bank) is a Pakistan-based commercial bank. The Bank provides commercial banking services, including commercial loans, investment advisory, asset management, global remittances, agency services, forex, leasing, modarba, underwriting, brokerage, and other banking and financial services. The Bank offers retail products, which include saving deposits, current deposits, housing finance, personal loans and agricultural loans; transaction banking services, which include cash management, trade finance and services, and remittance management; Corporate Finance services, which include deposits, structured corporate finance, capital advisory, investment advisory and trade finance; Treasury services, which include forex and financial derivatives, and government to person (G2P) services, which include pension payments, tax and fee collection, and other payments. The Bank serves its customers in over 20 countries.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.