KARACHI:State Bank of Pakistan will announce its revised monetary policy rate (interest) on Thursday; at present it is 13.75 percent after 150 bases points raise on May 23, 2022.
The policy statement will be announced by SBP’s Acting Governor Dr. Murtaza Syed at press conference at SBP Main Building, on the same day after Central Bank’s Monetary Policy Committee would meet there for detailed review of the economic indicators and their future trend, and to decide in-line monetary policy/framework.
Normally, SBP announces its monetary policy for next two months, but since COVID-19 pandemic outbreak in 2019, it has come up with before-schedule MPs to intervene the emerging economic conditions at domestic and global level. The present world scenario , especially inflationary pressures, also warrants the Central Bank to remain extra vigilant and responsive with corrective measures.
However, to make the process of monetary policy formulation predictable and transparent, State Bank had earlier announced a half-yearly schedule of Monetary Policy Committee meetings on a rolling basis. Following was the schedule : May 23, July 7, August 22, October 5, Nov. 25, 2022.
One year ago, in July 2021, the policy rate was 7.25 after increase of 25 bps.
At the current policy rate of 13.75, SBP has fixed 14.75 percent per annum as overnight reverse repo (ceiling) rate and 12,75 % for overnight repo (floor) rate.
The representative bodies of the business community of the country were un-welcoming to earlier increase in the policy rate.