Karachi: Market is expecting rate hike as high as 300 basis points when State Bank of Pakistan’s Monetary Policy Committee (MPC) meets next to decide key policy rate.

Analysts said central bank is expected to hike rate, which currently sits at record high of 22 percent, but it is quantum that would garner interest on day.

Currently, SBP is scheduled to hold its MPC meeting on September 14, according to an advance calendar it issued in July. However, central bank has taken liberty to announce changes in its key policy rate by holding ‘emergency’ meetings like it did in June previously. Market talk suggests that SBP would likely wait it out this time and an emergency meeting is unlikely.

Amreen Soorani Head of Research at JS Global projected a hike of 100 bps in policy rate. Tahir Abbas Head of Research at Arif Habib Limited expected hike of 100-150bps. Fahad Rauf Head of Research at Ismail Iqbal Securities Limited opted to go against wider consensus. Shahab Farooq Head of Research at Next Capital expected 200bps increase.

Published in The Daily National Courier, September, 01 2023

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