SBP rejects reports of urgent hike
ISLAMABAD: The State Bank of Pakistan today dispelled rumors of an urgent hike in the discount rate.
In a statement today, SBP said that the reports making rounds in media about holding of an emergency meeting of the Monetary Policy Committee (MPC) of SBP are completely baseless.
The central bank issued this statement a day after the stock market crashed on Thursday. The KSE-100 index lost more than 1200 points on Thursday amid rumors of urgent hike in policy rate and uncertainties in the country.
Furthermore, the SBP explained that it would be premature to forecast the future policy rate as only the MPC. The central bank said the MPC is an independent statutory body, is empowered to decide about the policy rate.
The next meeting of the MPC is scheduled to be held on September 14, 2023. The MPC members will take stock of the economic developments and make appropriate decision in the matter.
Stock market crashed on Thursday with 1200+ points decline: SBP rejects reports of urgent hike
Meanwhile, the stock market in Pakistan crashed on Thursday due to a deepening political and economic uncertainty in the country.
The benchmark KSE-100 index experienced a decline in its fifth consecutive session. On Thursday the benchmark KSE-100 index lost over 1200 points during intraday trading.
The KSE-100 index continued its bearish trajectory, plummeting by more than 1200 points to reach 44,950 at 3:05 pm. It marked a decline from the previous day’s closing value of 46,244 points.
Economic experts attribute this decline in the KSE to a lack of clarity concerning politics and the economy. The market is witnessing selling pressure due to economic uncertainty and the continuous devaluation of the rupee.
After the approval of the IMF loan, everyone in the country and abroad was anticipating economic revival and stability in Pakistan. However, things have gone the wrong way and the economy of Pakistan has, once again, landed into reverse gear especially after the formation of caretaker government. The foreign exchange reserves, stock market, remittances, exports, and value of rupee are steadily declining with the passage of time.
