SBP says emergency MPC meeting reports baseless

The State Bank of Pakistan (SBP) on Friday said reports of holding an emergency meeting of the Monetary Policy Committee (MPC) are baseless.

“The reports making rounds in the media about holding of an emergency meeting of the MPC are completely baseless,” it said.

“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 central bank reiterated that 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.

Its statement comes as the market became abuzz with reports that the SBP is likely to hold an emergency meeting – like it did in June – on the key policy rate.

The reports were given further weight as inflation is set to go higher with power tariffs and prices of petroleum products tipping the scales. The emergency meeting report was one reason for the KSE-100 Index coming under heavy pressure on Thursday when it suffered a fall of over 1,200 points.

Analysts Business Recorder reached out to on Thursday said the central bank is expected to hike the key interest rate, which currently sits at a record high of 22%, but its the quantum that would garner interest on the day.

The increase could be as high as 300 basis points, analysts said.