Financial Risk Manager

Ways of Financial and Risk Management

History of Discount Rate
Tuesday, April 21, 2009

Discount Rate is a rate at which State Bank of Pakistan advances loans to commercial banks for three to five days to cover up the liquidity pressure. People are of the opinion that decision of SBP to cut down the discount rate with 100 bps to 14% is wise while observing downward trent of inflation. Lets hope for the best. Brief history of the discount rate is as follows;