Pakistan central bank advances monetary policy committee meeting to Thursday

The next meeting of Pakistan's monetary policy committee has been moved up and will now be held on Thursday, the State Bank of Pakistan said on Twitter.

The cash-strapped country is undertaking key measures to secure a $1 billion loan from the International Monetary Fund (IMF), including raising taxes, and removing blanket subsidies and artificial curbs on the exchange rate.

While the government expects a deal with the IMF soon, media reports say the agency expects the policy rate to be increased.

Market participants in a recent treasury bill auction expect a 200 basis point increase at least in the central bank's policy rate, which stands at 17%.

Investors were anticipating an emergency meeting, which is not uncommon in Pakistan. The next meeting of the central bank's monetary policy committee was originally 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," the central bank said on Tuesday.

(Reuters)