Effectiveness of Bank Rate Instrument in Pakistan

M Umer Chapra

The Pakistan Development Review, 1962, vol. 2, issue 1, 84-96

Abstract: On January 15, 1959, bank rate was raised in Pakistan from its traditionallevel of 3 per cent to 4 per cent. This paper examines the effect of this rise of one percentage point in the bank rate on the borrowings of scheduled banks from the State Bank, their reserves, their lending rates, the supply of their credit, and the allocation of their credit among various sectors of the economy. This is done by comparing the values of certain relevant variables primarily in the year before the bank-rate change (l958) and the year after the bank-rate change (1959). From this examination of a single experience in Pakistan, it is not desired to prove that the bank rate would be effective or ineffective in future. It would, however, be unwise to ignore this bit of historical evidence in the country. The assessment will certainly give some idea of what to expect in future in comparable c~rcumstances.

Date: 1962
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/1962/Volume1/84-96.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:2:y:1962:i:1:p:84-96

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().