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Business & Finance

SBP says emergency MPC meeting reports baseless

  • Central bank says premature to forecast future policy rate
Published September 1, 2023

The State Bank of Pakistan (SBP) on Friday said reports of holding an emergency meeting of the Monetary Policy Committee (MPC) are baseless.

“The reports making rounds in the media about holding of an emergency meeting of the MPC are completely baseless,” it said.

“Furthermore, it would be premature to forecast the future policy rate as only the MPC, which is an independent statutory body, is empowered to decide about the policy rate.”

The central bank reiterated that the next meeting of the MPC is scheduled to be held on September 14, 2023, during which it will take stock of the economic developments and take appropriate decision in the matter.

Its statement comes as the market became abuzz with reports that the SBP is likely to hold an emergency meeting – like it did in June – on the key policy rate.

The reports were given further weight as inflation is set to go higher with power tariffs and prices of petroleum products tipping the scales. The emergency meeting report was one reason for the KSE-100 Index coming under heavy pressure on Thursday when it suffered a fall of over 1,200 points.

Analysts Business Recorder reached out to on Thursday said the central bank is expected to hike the key interest rate, which currently sits at a record high of 22%, but its the quantum that would garner interest on the day.

The increase could be as high as 300 basis points, analysts said.

Also read:

Comments

200 characters
Love Your Country Sep 01, 2023 10:51am
Time for quick bucks in the stock market for short sellers.
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Hilarious Sep 01, 2023 01:58pm
No other way forwards except for increasing interest rates above the inflation. Both models exist, those countries that are swift to take action unlike Pakistan feel the pinch surely in the short term but eventually are able to tame inflation like Sri Lanka, Countries like Pakistan that refuse to budge, for whatever reason bear the burnt longer and much harder, if policies are managed as they are currently hyperinflation and eventually currency rebasing would be on the cards. All these departments have only one job, no to incite panic, and they will blatantly lie for it if they have to. Save yourself, no one else is going to do it for you, especially not any form of government in Pakistan, where most of the leaders have never walked past and economics and finance class, let alone attend and learn something. Be the change you want to see, you have to grab your rights you will never be handed them because that would mean those in positions of power lose power over you.
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Arif Sep 01, 2023 03:04pm
Country is burning and SBP is playing chicken
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Umair Sep 01, 2023 06:04pm
@Arif, true its time for action, and they are illiterate people who dont have any economic sense
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Syed Israr Ali Sep 02, 2023 04:25am
Given the present mega inflation triggered with falling exchange rates need emergent multiple measures to support and stabilise national currency and check inflation. The foremost among those measures are the key interest rates which need to be taken to at least 36% pa i.e., the rate which bank's charge on outstanding balances from their credit card holders. Sooner the better.
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Syed Israr Ali Sep 02, 2023 04:43am
The present Kakar government in Pakistan with his kitchen cabinet is most incompetent lot having already been tried and failed specially of Finance consisting of FM Shamshad Akhtar and Advisor to PM on Finance Dr. Waqar Masood. The rupee is wildly losing its worth on daily basis and lethargic and callous approach conspicuous with the inaction and failure by this financial team to timely act to address the falling exchange rates only goes to seriously augment their incompetency. Sooner the better the incompetent, callous and negligent team is replaced
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