March 18, 2008	Tuesday	Rabi-ul-Awwal 9, 1429

KARACHI, March 17: Banks borrowed Rs19.65 billion from the State Bank Pakistan’s discount window on Monday in a tight inter-bank market, and dealers expect the bank to inject funds into the market through open market operation.

Overnight call rates ended at 10.40 per cent, unchanged from

Saturday’s close, and just below the 10.50 per cent discount rate at which banks borrowed funds from the SBP three-day repo facility.

It was the third consecutive session in which banks had to refer to the discount window, borrowing Rs9.85 billion and Rs2.125 billion from the facility on Friday and Saturday, respectively.

“Rates remained around these levels the whole day and in the absence of any scheduled cash inflows this week, they are likely to stay firm,” said a local bank dealer.

A brokerage dealer said he expected the central bank to inject funds into the inter-bank market through a reverse repo soon.

In the currency market, the rupee ended at 62.80/85 to the dollar, firmer than Saturday’s close at 62.86/91.—Reuters