KARACHI – The State Bank of Pakistan (SBP) has convened its monetary policy committee (MPC) meeting today amidst speculation that the central bank may conduct an off-cycle review to increase the key policy rate.
The cash-strapped country is set to increase interest rates as it faces pressure to change its finances while seeking a much-needed loan from the International Monetary Fund.
Experts claimed that the central bank will raise the key policy rate by 200bps to 19 percent to reduce the risk to the economy.
The MPC meeting was scheduled for March 16, however, the central bank on Monday decided to convene it two weeks early to address the risks to the economy.
Earlier, the central bank’s committee increased the key policy rate by 100 bps to 17pc on a higher inflation outlook.
Amid the economic meltdown, the federal government makes several desperate moves including restricting several imports and managing the current account deficit.
Pakistan s inflation rate rises to 31.5pc, highest in 50 years
It was speculated that after the increase in the policy rate, Pakistan will get crucial funding from IMF as the program remained halted over differences, which further worsen the economic situation.
