‘Monetary policy review scheduled for March 16’

KARACHI: The State Bank of Pakistan (SBP) said on Thursday that the date for its upcoming monetary policy meeting was so far scheduled for March 16.

This announcement was made despite strong talks that the central bank would likely hold an emergency review meeting to hike the benchmark interest rate.

Following the final meeting last month, no MPC (monetary policy committee) meeting has been held to date, according to the SBP's chief spokesperson Abid Qamar. “The next MPC meeting so far scheduled is on March 16,” he added.

The rise in treasury yields in the last auction hints towards market weighing-in concerns on the economic front with the investors continuing to take note of rising inflation around the world as well as in Pakistan, said Arif Habib Limited in a note.

Market participants in a recent auction assumed that the central bank’s policy rate, which is currently 17 percent, is expected to increase by at least 200 basis points. The rates the Pakistani government set at the auction to raise the funds are the basis for the anticipated hike.

However, analysts said IMF pressure or not, SBP needs to bring forward the next MPC meeting date as the ministry of finance cannot afford failure in the next T-bill auction.