State Bank of Pakistan increases interest rates to 12.25%. Shift saving to Pakistan and get more

[BHarwana]

https://twitter.com/i/web/status/1130429022813466624

UAE interest rates are currently 2.8%
Where as Pakistan it is 12.25%
UK interest rates are currently 0.75%
Where as Pakistan it is 12.25

Now is the good time to move savings to Pakistan and earn more.

 

[BHarwana]

This will now also bring dollar price down and it will also bring inflation down as well.

Dollar price to crash in Pakistan. If you have invested in dollar best time to cash is before May 21 after that it will start to fall and every day you wait you lose. Why?
A. Because high interest rates will restrict PKR supply to buy dollar.
B. High interest rates will give more return than dollar and people will sell this will make dollar price crash
C. High interest rates will restrict people and banks from taking loans and investing in dollar
D. High interest rates will decrease property price and money will flow from dollar to property.
E. More inflow of money from Gulf countries to Pakistan as interest rates there are low.

 

[xyx007]

This will give strength to Pak Rupee as interest rates in National savings, banks will go up giving people an incentive to keep their savings in rupees rather than in dollars. Secondly it will reduce demand, which means that it will reduce imports thus saving reserves. This will also decrease property prices which are insane in Pakistan and almost all businesses have become unprofitable due to these prices. So all in all it will have a good long term impact on the economy.

 

[BHarwana]

This will give strength to Pak Rupee as interest rates in National savings, banks will go up giving people an incentive to keep their savings in rupees rather than in dollars. Secondly it will reduce demand, which means that it will reduce imports thus saving reserves. This will also decrease property prices which are insane in Pakistan and almost all businesses have become unprofitable due to these prices. So all in all it will have a good long term impact on the economy.

Yes this is a good move and now country will start saving money rather than wasting it.

 

[Hakikat ve Hikmet]

While in Rome do as the Romans do....

Looks like some folks at last have taken the Pak economy seriously...

 

[BHarwana]

While in Rome do as the Romans do....

Looks like some folks at last have taken the Pak economy seriously...

Yep finally someone is making mafia pay and taking economy seriously. Undoing the corrupt system is long process but with this step now I have strong belief in IK.

 

[Hakikat ve Hikmet]

Yep finally someone is making mafia pay and taking economy seriously. Undoing the corrupt system is long process but with this step now I have strong belief in IK.

Couple it with the amnesty scheme. And, geo-political and geo-strategic conditions are in favor of a strong Pak economy....

 

[BHarwana]

Couple it with the amnesty scheme. And, geo-political and geo-strategic conditions are in favor of a strong Pak economy....

Previously what corrupt will do is buy dollar with corruption money then lower interest rates that everyone else buy dollar and then make dollar go short in market and then dollar price increases and corruption money starts giving profit. Now people cannot take loans to buy dollar and price decreases and corruption money start giving loss only solution take amnesty scheme.

 

[Skull and Bones]

Now if currency depreciates by 10% in the coming year (which is a very conservative figure), then your effective yield is just 2.5%.

Why not invest in Argentine bonds then?

 

[Thorough Pro]

This is how it works.

This might help.

https://twitter.com/i/web/status/1130429022813466624

UAE interest rates are currently 2.8%
Where as Pakistan it is 12.25%
UK interest rates are currently 0.75%
Where as Pakistan it is 12.25

Now is the good time to move savings to Pakistan and earn more.

 

[xyxmt]

This will now also bring dollar price down and it will also bring inflation down as well.

Dollar price to crash in Pakistan. If you have invested in dollar best time to cash is before May 21 after that it will start to fall and every day you wait you lose. Why?
A. Because high interest rates will restrict PKR supply to buy dollar.
B. High interest rates will give more return than dollar and people will sell this will make dollar price crash
C. High interest rates will restrict people and banks from taking loans and investing in dollar
D. High interest rates will decrease property price and money will flow from dollar to property.
E. More inflow of money from Gulf countries to Pakistan as interest rates there are low.

you missed out one point, high interest rates will slow down economy further, If I have one billion rupee why wound i open a industry but put money in the bank and earn interest.

 

[Imad.Khan]

https://twitter.com/i/web/status/1130429022813466624

UAE interest rates are currently 2.8%
Where as Pakistan it is 12.25%
UK interest rates are currently 0.75%
Where as Pakistan it is 12.25

Now is the good time to move savings to Pakistan and earn more.

In Australia its 1.5%
https://www.rba.gov.au/media-releases/2019/mr-19-11.html

The lower the interest rate, the better the financial growth.

you missed out one point, high interest rates will slow down economy further, If I have one billion rupee why wound i open a industry but put money in the bank and earn interest.

Exactly

 

[Tom M]

This will now also bring dollar price down and it will also bring inflation down as well.

Dollar price to crash in Pakistan. If you have invested in dollar best time to cash is before May 21 after that it will start to fall and every day you wait you lose. Why?
A. Because high interest rates will restrict PKR supply to buy dollar.
B. High interest rates will give more return than dollar and people will sell this will make dollar price crash
C. High interest rates will restrict people and banks from taking loans and investing in dollar
D. High interest rates will decrease property price and money will flow from dollar to property.
E. More inflow of money from Gulf countries to Pakistan as interest rates there are low.

What a stupid Analogy. And you call yourself a Tomato economist, huh??

Mark my words, with this increase in interest rate on deposits, the interest given out by the banks especially housing loan rates will also go up.

Above all it sounds like banks in Pakistan are facing a serious liquidity issue I guess. One on the main reason SBP is forced to increase the rates despite the nation going through difficult economic situation. Wait for few days and the clear picture will be out soon.

 

[BHarwana]

you missed out one point, high interest rates will slow down economy further, If I have one billion rupee why wound i open a industry but put money in the bank and earn interest.

Yes that is why interest rates have been made high. We need to slow economy because the path PMLN places economy in the growth was helping imports and out flow of cash. Currently we don't need high growth but we need inflow of money and increase in reserves to address deficit. We can increase growth later. High growth and high imports of plmn did us any favor?

 

[xyxmt]

Yes that is why interest rates have been made high. We need to slow economy because the path PMLN places economy in the growth was helping imports and out flow of cash. Currently we don't need high growth but we need inflow of money and increase in reserves to address deficit. We can increase growth later. High growth and high imports of plmn did us any favor?

no it did not but we desperately need new industries, businesses and jobs