SBP mulls revising policy rates in rescheduled MPC meeting on March 2
Last updated on: 28 February,2023 01:56 pm
Market experts are expecting a 200-basis-point increase in the central bank’s policy rate
KARACHI (Web Desk) - In an apparent attempt to increase the pace of efforts to secure the much-awaited International Monetary Fund's (IMF) tranche, the State Bank of Pakistan (SBP) on Tuesday preponed its Monetary Policy Committee (MPC) meeting on March 2.
The meeting was earlier scheduled to meet on March 16.
Taking to Twitter, the central bank stated: "The forthcoming meeting of the Monetary Policy Committee has been preponed and now it will be held on Thursday, March 02, 2023."
The forthcoming meeting of the Monetary Policy Committee has been preponed and now it will be held on Thursday, March 02, 2023. pic.twitter.com/555JOhCFoe
— SBP (@StateBank_Pak) February 28, 2023The SBP's chief spokesperson, Abid Qamar had earlier said following the meeting last month, no MPC meeting had been held to date.
Market experts are expecting a 200-basis-point increase in the central bank’s policy rate, which currently stands at 17 per cent.
Pakistan has already agreed to raise the interest rate in an off-cycle review by two per cent, as the cash-strapped country faces pressure to mend its finances to secure $1 billion from the International Monetary Fund.
The Ministry of Finance authorities, according to reports, said the agreement was reached in Friday night (March 24)’s virtual talks with the officials of the global lender.
They said the South Asian country would reach the staff-level agreement with the IMF after resolution of issues in the power sector. The policy rate would be jacked up by 200 basis point to take it to 19pc as it is currently stands at 17pc -- the highest level in 25 years.
The cash-strapped country is undertaking key measures to secure IMF funding, including raising taxes, removing blanket subsidies, and artificial curbs on the exchange rate. While the government expects a deal with IMF soon, media reports say that the agency expects the policy rate to be increased.