In a bid to improve the predictability and transparency of monetary policy formulations, the State Bank of Pakistan (SBP) on Thursday introduced the advance calendar of Monetary Policy Committee (MPC) meetings.

As per details, the central bank has decided to begin announcing a half-yearly schedule of MPC meetings on a rolling basis. In this regard, the dates for the next four meetings are as follows: May MPC meeting: Friday, 28th May 2021; July MPC meeting: Tuesday, 27th July 2021; September MPC meeting: Monday, 20th September 2021; November MPC meeting: Friday, 26th November 2021.

SBP said that its latest step is in line with international best practices. “To manage expectations of economic agents, many central banks across the globe release the schedule of Monetary Policy Committee meetings in advance. This practice is consistent with the objective of reducing uncertainty around monetary policy decision making,” it said.

SBP was of the view that clear communication will aid in making the central banks more transparent, and thereby contributes to enhancing their accountability. “Central bank communication and transparency are also key for effective transmission of monetary policy decisions,” it said.

It is pertinent to mention that a minimum of six MPC meetings are scheduled every year. In addition, the MPC can convene emergency meetings during the intervening period, if required.

The SBP has lately taken a number of initiatives to modernize and increase transparency in the monetary policymaking process. Last year, SBP increase interactions with analysts, the media, various business forums, academics, and investors through regular briefing sessions with its senior management.

While in January, the MPC decided to provide forward guidance on monetary policy for the first time to facilitate policy predictability and decision-making by economic agents in wake of unpredictability caused by the coronavirus pandemic.