State Bank of Pakistan
U.S. Economy Pulling Out Ahead of the Crowd of Other Economies
December 16, 2024
The S&P Global U.S. preliminary composite purchasing managers index jumped 1.7 points to a 33-month high of 56.6 in December. This result far exceeded analyst expectations, led by the service sector whose subindex reached a 38-month high on the prospect of widespread deregulation by the incoming Trump administration. America’s good December report card contrasted with […] More
Greater-Than-Forecast Pakistani Interest Rate Cut
June 10, 2024
The first interest rate cut at the State Bank of Pakistan since June 2020 has been announced, and the 150-basis point size of the reduction to 20.5% exceeded analyst expectations. Pakistani CPI inflation slowed from 38.0% in May 2023 to 11.8% one year later. In cutting their interest rate, officials noted a ” continued moderation […] More
Political Strains and Assorted Economic Data Releases
June 10, 2024
Monday finds politics in the forefront: A key centrist in the Israeli ruling cabinet resigned, making Prime Minister Netanyahu even more dependent on the extreme right-wing element of his his government. In the continuing absence of a peace-for-hostages settlement, Israel’s rescue of a few hostages at the expense of hundreds more lives has dealt a […] More
Another Pakistani Central Bank Rate Hike
April 4, 2023
One monetary authority whose officials couldn’t afford to put policy tightening on pause is the State Bank of Pakistan. In a meeting scheduled initially for April 27 but moved up in the month, officials raised their policy rate for a tenth time since September 2021, but the percentage point increment announced today was only a […] More
Another Rise in Equities Despite Higher Bond Yields and Price of Oil
April 4, 2023
Fear of an additional climb in central bank interest rates has lessened. The Reserve Bank of Australia‘s Official Cash Rate, which had been raised from 0.1% to 3.6% between May 2022 and last month, was left unchanged. A released statement said that inflation had peaked in Australia but projects that a return to the 2-3% […] More
Three Percentage Point Central Bank Rate Hike in Pakistan
March 2, 2023
Officials at the State Bank of Pakistan boosted the policy interest rate sharply from 17% to 20% today, bringing the rate level to a 27-year high. This was the second increase of 2023 following a 100-basis point move in January. From a pandemic low of 7.0%, the rate was lifted by 275 basis points in […] More
Dollar Buoyed by Higher U.S. Long-Term Interest Rates and Reinvigorated Hawkish Fedspeak
March 2, 2023
In overnight action, the dollar advanced 0.6% against the euro, sterling, yuan and kiwi and by 0.5% relative to the yen and Australian dollar. At 4.07%, the ten-year U.S. Treasury yield has climbed 8 basis points today and 67 basis points over the four weeks since February 2nd. The Federal Reserve District presidents in Minnesota […] More
Pakistani Central Bank Rate Increased to 17%
January 23, 2023
The State Bank of Pakistan‘s policy rate has been raised a full percentage point to a 24-year high of 17.0%. That’s 10 percentage points above the pandemic low of 7% that prevailed from June 2020 until an initial 25-basis point hike in September 2021. The previous rate hike in November was also by a full […] More
Lunar New Year Holiday Quells Monday Financial Market Activity
January 23, 2023
Financial markets in China will be shut all week for the Lunar New Year holiday that ushers in the Year of the Rabbit. Hong Kong, Taiwan, Indonesia, Malaysia, Singapore, South Korea, and Vietnam are also closed today. The euro touched a nine-month high overnight of $1.0923 but subsequently settled back under $1.09 to a net […] More
Holidays in U.S., Japan, and Canada But No Respite for Equity Market Weakness
October 10, 2022
China emerged from a full-week holiday to experience a 1.7% drop in equity prices. Stock markets also fell 1.4% in Australia and Taiwan, 3.0% in Hong Kong, and 1.2% in Singapore. Japan observed Health and Sports Day, and the U.S. and Canada are observing Columbus Day and Thanksgiving Day, respectively. There will be not bond […] More
