KARACHI, July 28: Short-term money rates rose on Monday, reflecting expectations of a rate rise in a central bank monetary policy that was due to be announced on Tuesday.

Overnight call rates ended at 11.5 per cent, up from Saturday’s close of 10.5 per cent, despite inflows amounting to Rs16.18 billion from maturing government securities, dealers said.

“Rates went up as there are expectations of a rise in the discount rate tomorrow of at least one per cent,” said a brokerage house dealer.

A survey of seven analysts by Reuters showed most believed the key discount rate would be raised between 0.5 and 1.5 percentage pints from its current level of 12 per cent.

Inflation is running at its highest level for three decades, and the country is also burdened by unsustainable fiscal and current account deficits.

In the currency market, dealers said the rupee ended at 71.20/25 to the dollar, slightly weaker from Saturday’s closing.

Dealers expect the rupee to remain stable in the short-term but are uncertain about the medium to long term.—Reuters