Interbank Rates Continue to Rise Despite CBI Expansionary Policy

Interbank rates continued to rise this week for the sixth consecutive week amid the central bank’s expansionary measures. 
It surged to 19.35% to hit the highest level in the current fiscal year -- up from 18.29% almost a month ago.
The steady increase is apparently due to the unprecedented lenders’ liquidity crunch in the interbank market despite the CBI’s efforts to tame the uptrend with the help of expansionary policy. 
Expansionary monetary policy works by expanding the money supply faster than usual or lowering short-term interest rates.