State Bank announced concluding monitory policy of the year. The discount rate has been retained at 10% despite the fact that inflation rate touched the target. The development has surprised the financial sector of the country and the business sector also seems unhappy.
Government’s borrowing from the banking sector has dropped to 276 billion rupees in the current fiscal year, whereas the central bank was repaid 287 billion rupees.
The interest rate in November 2013 was raised to 10% which has been retained continuously in the third monitory policy.
