Big decisions likely in unusual meeting of SBP’s monetary policy committee

KARACHI: Big decisions are likely to be taken as the monetary policy committee of the State Bank of Pakistan (SBP) will hold an unusual meeting, ARY News reported on Tuesday.

The central bank’s monetary policy committee would hold a preponed meeting on March 2. Sources told ARY News that the introductory interest rate will likely increase from 2% to 2.5%.

It was learnt that the government acquired massive loans on a short-term basis from the banks at a record interest rate of 20%. Sources added that the government acquired Rs257 billion in loans from banks at an increased interest rate of 2%.

READ: SBP’S FOREIGN EXCHANGE RESERVES INCH UP BY $66M

The bankers said that the higher T-bill rates are a clear indication of an expected increase in the interest rate in the coming days.

Earlier in the day, the State Bank of Pakistan (SBP) preponed the Monetary Policy Committee’s meeting on March 2 — two weeks earlier than scheduled.

“The forthcoming meeting of the Monetary Policy Committee has been preponed and now it will be held on Thursday, March 02, 2023,” the SBP said in a brief statement.

The next meeting of the central bank’s Monetary Policy Committee was initially scheduled for March 16.

The forthcoming meeting of the Monetary Policy Committee has been preponed and now it will be held on Thursday, March 02, 2023. pic.twitter.com/555JOhCFoe

— SBP (@StateBank_Pak) February 28, 2023

The bank revised the schedule for the meeting to fulfil another condition of the IMF to hike key policy rates by 200-300 basis points to win back the $6.5 billion loan programme.