JS Securities Limited – JS Research (19-09-2019)

Karachi, September 17, 2019 (PPI-OT): Latest MPS provided with a touch of assurance, but absent any rate cut!

The SBP in its latest MPS maintained a status quo stance, where inflation was cited as central to the decision. The central bank also mentioned that further improvement is awaited in the macroeconomic environment, before a decision will be taken on whether to cut the policy rate from its current level of 13.25%. Overall, looking at the MPS, while the SBP has attempted to calm the nerves of the market, in our view (and we could be wrong), SBP did not deem necessary elaborating on the serious risks prevailing in the economy. However, it also needs to be mentioned that the SBP has now started a very commendable practice of holding Analyst Briefings after every MPS to address any questions.

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