EA Report
Lahore, Nov. 16— State Bank of Pakistan (SBP) brought forward meeting of Monetary Policy Committee (MPC) following recent “unforeseen developments” that have affected the outlook for inflation and the balance of payment.
Monetary Policy Committee (MPC) has decided to bring forward its next meeting from the previously announced date of November 26, stating that meeting.
In a brief statement on Tuesday, SBP says, “The MPC will now convene in SBP Karachi on Friday, November 19, 2021.”
The SBP said the meeting has been brought forward in light of recent unforeseen developments that have affected the outlook for inflation and the balance of payments, and to help reduce the uncertainty about monetary settings prevailing in the market.
“The MPC will take stock of these developments and decide about monetary policy. The SBP will issue the Monetary Policy Statement through a press release on the same day.”
The SBP had this year introduced an advance calendar of its MPC meetings as it looked to improve the predictability and transparency of monetary policy formulations.
Earlier, SBP rolled out advance calendar of MPC meetings that now has been changed due to prevailing circumstances SBO could not be able to asses.
It had said that “to manage expectations of economic agents, many central banks across the globe release the schedule of Monetary Policy Committee meetings in advance”.
“This practice is consistent with the objective of reducing uncertainty around monetary policy decision making,” it said.
However, the latest development is a testament to the changed economic environment in the country where inflationary and balance-of-payments concerns have forced the SBP to change a schedule it had announced in May 2021.
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