Friday Nov 19, 2021
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 that the 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:
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 its benchmark policy rate by 150 basis points to 8.75% largely in line with the market expectation because of risks related to inflation.