KARACHI – The State Bank of Pakistan (SBP) on Friday refuted rumours regarding the convening of an emergency meeting of the Monetary Policy Committee (MPC), dismissing such reports as “unfounded.”
The central bank took to the social media platform X (formerly Twitter) to state, “The circulating reports in the media about an emergency MPC meeting at SBP are entirely without merit.”
This statement from the central bank comes in response to analysts’ speculations about the possibility of a 300 basis point increase in the policy rate due to concerns about the weakening economy and the continuous depreciation of the rupee.
Just a day before, the KSE-100 index of the Pakistan Stock Exchange had seen a sharp decline of approximately 1,250 points or 2.7%, with many analysts attributing these losses to rumours of an impending interest rate hike.
Reports circulating in media about an emergency meeting of the Monetary Policy Committee are completely baseless. Next meeting is scheduled for Sep 14, 2023, during which the committee will assess the economic developments and take appropriate decisions.https://t.co/F60313DJAu pic.twitter.com/ajechHYlf3
— SBP (@StateBank_Pak) September 1, 2023
While not directly addressing these rumours, the SBP emphasized that making predictions about the future policy rate at this stage would be premature, as only the MPC, an independent statutory body, possesses the authority to make decisions concerning the policy rate.
The statement further mentioned that the next committee meeting was scheduled for September 14, during which the MPC would assess current economic developments and make an appropriate decision regarding the matter.
Following the previous MPC meeting in July, the SBP had opted to maintain the key policy rate at 22 percent. The bank had also held rates steady in June, citing that inflation had reached its peak at 38 percent the previous month. However, shortly before the end of June, an emergency meeting resulted in a 100 basis point rate hike, citing a “slightly deteriorated inflation outlook.”
