News
Thursday, October 20, 2011
Yasin Anwar made SBP governorKARACHI/ISLAMABAD: Pakistan’s acting central bank governor, who approved what analysts say were highly risky interest rate cuts, was appointed as State Bank of Pakistan governor on Wednesday, a spokesman for President Asif Ali Zardari said. Yaseen Anwar assumed duties on an interim basis three months ago after the former governor of the State Bank of Pakistan Shahid Hafiz Kardar resigned only nine months after being appointed, citing “differences of opinion on policy actions” as the reason behind the move. Anwar’s appointment makes him the fourth central bank chief in Zardari’s government. Anwar also has aggressively - and unexpectedly - cut the key policy rate by 200 basis points to 12 percent since July. The business community hailed the decision and the stock market registered a boom, but economists were critical, warning it could end up widening the deficit and exacerbating inflation as the rupee has shown weakness against the US dollar. The rate cuts have also led to some analysts questioning the bank’s independence, especially since the main beneficiary of lower rates would be Zardari’s cash-strapped government. Prime Minister Yousaf Raza Gilani directed the newly appointed governor to maintain financial discipline in the country and asked him to keep him informed about the state of the economy. agencies
Courtesy www.dailytimes.com.pk