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Bingo ! Policy Rate Cut by 25 bp to 5.75%….

May 21, 2016

I am glad that I am the only Analyst in Pakistan that had predicted Policy Rate, cut 3-days ago (May 18). When I gave my argument for Policy Rate cut, Banks Treasury Heads/Analyst/Economist totally disagreed with me and there were raised eyebrows.

However, I still believe more rate cut yet to come, as there is no change in my reasoning.

T/bills and Bonds are looking good for another big rally from next week onward.

Here I am quoting what I said on Wednesday may 18, which is available on link below………

“Therefore, in all probability, rate hike is not expected any time soon, not even in 1st quarter of FY 16-17.

In fact rate cut is still a favorable option that will help to reduce cost of debt financing and simultaneously will help to reduce cost of doing business to stimulate economy.

Hence, in all probability, T/bills and Bonds yields will gradually ease, as corporate demand will add buying pressure”.

One Comment
  1. i i PTI permalink

    u r cheeta

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