The reports making rounds in the media about holding an emergency meeting of the Monetary Policy Committee (MPC) of the State Bank of Pakistan are completely baseless, the regulator clarified in a statement on Friday.
“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 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,” the central bank stated.
The central bank’s statement comes after recent reports that a rate hike of 200-300 basis points was imminent in an emergency market review which, according to analysts, would be held before the scheduled meeting on September 14.
According to an advance calendar released in July, SBP’s monetary policy meeting is slated for September 14. Local media and prominent analysts are of the view that the central bank, will follow its late tradition of announcing an interest rate hike by calling ’emergency’ meetings, as seen in June.
Contrary to market speculation, the central bank’s aforesaid statement confirms that it would wait it out this time, and an emergency meeting is doubtful.
