Pakistani reduces cash reserve ratio

KARACHI Wed Oct 8, 2008 9:48pm IST

KARACHI Oct 8 (Reuters) - The central bank of pakistan reduced banks' cash reserve ratio (CRR) to 8 percent from 9 percent, effective from Oct. 11, the State Bank of Pakistan's spokesman told Reuters on Wednesday.

The central bank will further slash the CRR to 7 percent effect from Nov. 15.

Bankers had privately urged the central bank to reduce the statutory liquidity requirement (SLR) or CRR by at least 50 basis points, or possibly both, to stop a liquidity crunch putting banks in jeopardy. (Reporting by Sahar Ahmed; Editing by Simon Cameron-Moore)

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