• Download the Constitution of Pakistan
  • Advertise
Tuesday, July 29, 2025
  • Login
NEWSLETTER
ECONOMY
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology
No Result
View All Result
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology
No Result
View All Result
ECONOMY
No Result
View All Result
Home Business

PSX soars over 500 points in early trade after SBP keeps policy rate unchanged

by News Publishing
August 23, 2022
in Business, Finance, Main
Reading Time: 3 mins read
0
Foreign exchange: SBP reserves fall $584m to $6.11bn
Share on FacebookShare on TwitterLinkedinWhatsapp

Stocks rallied on Tuesday, rising more than 500 points in the early morning trade after starting the week in the red. The benchmark KSE-100 index increased 536.04 points, or 1.25 percent, by 10:10 a.m. to reach 43,362.70 points.

PSX soars over 500 points in early trade after SBP keeps policy rate unchanged

The Pakistan Stock Exchange (PSX) was “surprised” by the Monetary Policy Committee’s (MPC) decision to maintain the policy rate at 15 percent for the ensuing two months, according to First National Equities Limited Chief Executive Ali Malik, and investor confidence has risen as a result.

“It is anticipated that the market will begin to rise from this point. The market may hit 45,000 points in the upcoming days if political stability is maintained, he said.

Malik added that the continuous increase in the volume of shares being traded at the PSX was an indicator that investors were making fresh entries.

Raza Jafri, the head of research at Intermarket Securities, pointed out that the MPC’s decision to keep its interest rate was the first pause since the start of monetary tightening in September of last year.

He continued, “Politics remains noisy in the background, but increasing confidence in the economic future is bringing valuations into focus, which remain undeniably low.

Monetary policy

The State Bank of Pakistan (SBP) had earlier said that it was advisable to hold off on raising interest rates at this time because recent inflation trends had been in line with expectations, domestic demand had started to slow down, and the external position had begun to improve.

In a statement, it added that “severe fiscal consolidation is anticipated for FY23” and that “temporary administrative procedures have recently been implemented to curb imports” in order to calm the overheating economy and control the current account deficit (CAD).

Since the last meeting, the SBP has highlighted that headline inflation increased further in July, reaching 24.9 percent, with core inflation also increasing.

The SBP predicted that the withdrawal of the energy subsidy package will continue to show up in inflation results for the rest of the fiscal year, as well as a trend in the prices of dietary staples and last month’s exchange currency weakness.

The central bank believes the expected inflow of $1.2 billion from the International Monetary Fund will work as a catalyst for financing from multilateral and bilateral lenders.

Overall, the SBP stated that given Pakistan’s relatively small export share and foreign private inflows into the economy, a slight slowdown in global growth would not be as detrimental to the country as it would be for most other emerging nations.

As a result, as global commodity prices decline, both inflation and the CAD should decrease, while growth would not be as negatively impacted, according to the SBP.

Tags: KSE-100 indexlatestPolicy ratePSXState Bank of Pakistan
News Publishing

News Publishing

Related Posts

Pakistan, Russia sign Protocol to restore & modernize PSM

Pakistan, Russia sign Protocol to restore & modernize PSM

by News Publishing
July 11, 2025
0

Pakistan and Russia have signed a Protocol to restore and modernize Pakistan Steel Mills (PSM) in Karachi, reaffirming their long-standing...

PSX soars to new high of over 133,000 points in intraday trade

PSX soars to new high of over 133,000 points in intraday trade

by News Publishing
July 7, 2025
0

July 8, 2025: The Pakistan Stock Exchange (PSX) continued its remarkable upward trend on Monday, as the KSE-100 index surged...

Pakistan, Azerbaijan sign $2billion investment agreement

Pakistan, Azerbaijan sign $2billion investment agreement

by News Publishing
July 5, 2025
0

Pakistan and Azerbaijan have signed an agreement for investment worth two billion dollars in diverse sectors of Pakistan's economy. The...

Petrol price increased by Rs8.36 per litre for next fortnight

Petrol price increased by Rs8.36 per litre for next fortnight

by News Publishing
July 1, 2025
0

The Finance Division has announced a significant increase in fuel prices, citing volatility in global crude oil markets. Effective from...

Petrol increase

Petrol Prices Likely to Rise by Rs5/Litre from July 1

by Anum Arif
June 30, 2025
0

ISLAMABAD: Prices of petroleum products in Pakistan are likely to rise by up to Rs5 per litre starting Monday, July...

Pakistan welcomes supplemental award by Court of Arbitration in Indus Waters matter

Pakistan welcomes supplemental award by Court of Arbitration in Indus Waters matter

by News Publishing
June 28, 2025
0

Pakistan has welcomed the Supplemental Award issued by the Court of Arbitration in the ongoing Indus Waters Treaty dispute, affirming...

Next Post
Pakistan wants to transform its bilateral ties with Qatar into robust strategic relationship: PM

Pakistan’s PM arrives in Qatar to enhance bilateral ties, business collaboration

About Us

Economy.pk is a source of economic, political, business, finance, health and sports updates.

Important Categories

  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology

Social Media

  • Facebook
  • Instagram
  • Twitter
  • Linkedin
  • YouTube
  • Linkedin
  • TikTok
  • WhatsApp
  • About
  • Advertise
  • Careers
  • Contact

© 2024 Economy.pk - Web Development by Digital Otters

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business
  • Education
  • Entertainment
  • Finance
  • Health
  • Life & Style
  • Politics
  • Sports
  • Technology

© 2024 Economy.pk - Web Development by Digital Otters