SBP increases frequency of monetary policy meetings

• According to the SBP, the decision has been taken in line with international best practices.
• Central banks aims to make the process of monetary policy formulation “more predictable and transparent."
• It is pertinent to mention here that the US's FOMC holds eight regularly scheduled meetings per year.

KARACHI: The State Bank of Pakistan (SBP) on Friday decided to increase the number of Monetary Policy Committee (MPC) meetings — in which it reviews and sets the benchmark interest rate — from six to eight times a year.

According to a statement issued by the central bank, the decision has been taken in continuation of efforts to make the process of monetary policy formulation “more predictable and transparent, in line with international best practices.”

It is pertinent to mention here thatthe US's Federal Open Market Committee (FOMC) holds eight regularly scheduled meetings per year.

“This action will bring the frequency of meetings in line with that in comparable emerging markets. It will also help to enhance the predictability of monetary policy actions,” the central bank said.

Accordingly, the schedule for the next five MPC meetings is as following:

• December MPC meeting: Tuesday, Dec 14, 2021
• January MPC meeting: Monday, Jan 24, 2022
• March MPC meeting: Tuesday, Mar 8, 2022
• April MPC meeting: Tuesday, Apr 19, 2022
• June MPC meeting: Friday, Jun 10, 2022

An advance calendar for another six months of MPC meetings will be shared at the time of the June 2022 MPC meeting, the statement read.

The central bank today increased itsbenchmark policy rate by 150 basis points to 8.75% largely in line with the market expectationbecause of risks related to inflation.