Monetary Policy Committee: SBP issues advance calendar for meetings in January-June 2024

The State Bank of Pakistan (SBP) has issued the advance calendar of Monetary Policy Committee (MPC) meetings for the period between January and June 2024.

The central bank is due to hold four meetings during the six-month period, according to the schedule. The first meeting will be held on January 29 (Monday), 2024 while the second one will be held on March 18 (Monday), 2024.

The third meeting is scheduled to be held on April 29 (Monday), 2024 while the fourth is expected to take place on June 10 (Monday), 2024.

In its last meeting on December 12, the MPC kept the policy rate unchanged at 22 percent as inflation in November was relatively higher than the earlier expectations due to the recent hike in gas prices.

A brokerage house JS Global on Tuesday said the Consumer Price Index (CPI)-based inflation in Pakistan is expected to remain elevated, and could clock in at 27.9% on a year-on-year (YoY) basis in January, lower than 29.7% in December.

Meanwhile, the government has reportedly informed the International Monetary Fund (IMF) that it stands ready to respond resolutely if near-term price pressures reemerge, including due to stronger-than-expected second-round effects on core inflation, or if pressures on the exchange rate reemerge amid the normalisation in the current account.

What does the MPC do?

The MPC is responsible and fully empowered to decide the monetary policy stance.

Section 9E of the SBP Act 1956 lays out the powers and functions of the Monetary Policy Committee that have been mainly identified to formulate monetary policy, including, as appropriate, decisions relating to intermediate monetary objectives, key interest rates and the supply of reserves in Pakistan and may make regulations for their implementation.

Moreover, the MPC also approves and issues the monetary policy statement and other monetary policy measures. It also performs any other functions conferred on it by law and carries out any ancillary activities incidental to the exercise of its functions under this Act.