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KARACHI, March 9: The State Bank on Thursday pumped Rs10 billion into the interbank market to ease the liquidity crunch, but the injection failed to bring down the overnight money rates.
The banks, which have to meet five per cent cash reserves target with the SBP on Friday, absorbed the whole liquidity.
The demand of liquidity was high which pushed the overnight rate up to 8.9 per cent. Dealers said that the next Saturday might be an easy day for the market and rates might slip.
The SBP has been maintaining higher money rates as part of its policy to keep monetary position tight and to control inflation.
