However, the International Monetary Fund (IMF) has asked the government to make such borrowing from commercial banks instead of the central bank. State Bank borrows Rs187b in T-bills auction“Borrowing from the central bank increases inflation as the central bank provides the financing by printing new currency notes,” Taurus Securities’ analyst Mustafa Mustansir added. They bought six-month T-bills worth Rs1.4 billion and submitted no bids for 12-month T-bills, according to the central bank. However, it would be too early to say as to how much rate increase would be made and when, but T-bills’ auction showed the trend, he added. “Had they not been expecting a further rate hike, they would have placed higher bids for 12-month T-bills rather than aggressively participating in the three-month T-bills auction,” he said.