The State Bank of Pakistan (SBP) has dismissed reports suggesting that an emergency meeting of the Monetary Policy Committee (MPC) is being held to increase the policy rate. The SBP clarified that such reports are baseless and premature.
Earlier, there were speculations about a possible 300-point hike in interest rates, raising them to 25%. However, the SBP emphasized that only the MPC, an independent statutory body, has the authority to decide on the policy rate.
The meeting of the MPC is scheduled for September 14. During this gathering, the committee will assess the current economic situation and make appropriate decisions regarding the policy rate, according to a statement by the central bank.
The current policy rate stands at 22%, which was announced on June 26, 2021. This rate is the highest in the country’s history. The previous MPC meeting held on July 31, 2021, resulted in no change to the interest rates.
Meanwhile, the foreign exchange reserves of the State Bank of Pakistan have declined by $81 million to reach $7.84 billion.