SBP may lower interest rates

According to Top line report, after witnessing a surprising lower than estimated inflation as measured by CPI (11.56%) in Aug 2011, the numbers for this month will bring some more positive news.According to Topline estimates YoY CPI may fall to 19-months low to range between 10.8-11.2% in the month of September, 2011. This expected ease in inflationary pressures would advocate central bank to continue the process of monetary easing in the upcoming monetary policy scheduled on October 08, 2011.Furthermore, the government decision to part ways from IMF would also provide domestic policy makers some room to develop a more indigenous growth oriented but risky plan to protect the nascent economic recovery.