The State Bank on Wednesday raised Rs 2.40 billion through auction of Treasury Bills of six months maturity. The State Bank had fixed a target of Rs 5 billion. However, it remained short of target but raised the cut-off yield by 60 basis points. The cut-off yield on 6-month T-bills was 3.8426 percent per annum.
Analysts said the increase in the cut-off yield was a sign that SBP wants increase in the interest rate gradually and was making effort to control the inflation which hurts economic growth of the country.