March 02, 2023 (MLN): The spokesman for the State Bank (SBP) on Thursday stated that the new monetary policy will be announced after 3 pm today.
As of now, it is uncertain what the final decision regarding the interest rate will be. However, once the new monetary policy is announced, it will have a significant impact on the country’s economy and financial markets.
At present, the interest rate in Pakistan is at 17%, but the State Bank’s Monetary Policy Committee is currently in a meeting to discuss a possible change in the interest rate.
The meeting, which is being presided over by Governor State Bank Jameel Ahmed, has been ongoing for two and a half hours.
Economic analysts have predicted a two percent increase in the interest rate, while negotiations with the International Monetary Fund (IMF) have set the condition of an interest rate increase.
This suggests that there is a possibility of an increase in the interest rate in the upcoming monetary policy announcement.
To note, the ongoing meeting has been preponed to March 02, 2023 (today), from its previously scheduled date of March 16, 2023.
The decision comes in line with the expectations of market participants who had anticipated an emergent MPC meeting to raise the policy rate and unlock the fund deal.
The central bank’s announcement had been well-received by the majority of individuals who participated in a recent poll conducted by Mettis Link News. The poll suggests that the policy rate might be increased by 200 basis points to 19%.
The rescheduling of the MPC meeting indicates that the central bank is taking necessary measures to stabilize the country’s economy, which has been affected by high inflation and an unstable exchange rate.
