Pakistan Economy: Inflation makes monetary outlook hazy, (AKD Daily, Jan 29, 2020)
Pakistan Economy: Inflation makes monetary outlook hazy
- In line with wider market expectations, the Monetary Policy Committee (MPC) of SBP kept the policy rate unchanged at 13.25% in a third consecutive monetary policy announcement. The decision underscored the MPC’s singular focus on inflation.
- While inflation considerations have led SBP to hold the policy rate, the policy statement carried ‘accommodative bias’, with statement downplaying the inflationary risks and the SBP governor announcing facilitative measures for domestic and export industries.
- Near term inflation outlook remains uncertain, with a multitude of factors at play including price normalization in certain food items, timing and scale of utility rate adjustments, and fiscal considerations.
- Juxtaposing our base-case expectations for inflation (2HFY20: 12.17%YoY) against nominal interest rates, we reiterate our stance that the SBP is likely to stay on hold until May’20.
AKD Research
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.