Introduction to Monetary Policy
The State Bank of Pakistan has announced its plan to increase transparency and confidence among stakeholders by releasing the full year advance calendar of Monetary Policy Committee (MPC) meetings for the Fiscal Year 2025-26. This move is aimed at providing a clearer understanding of the monetary policy formulation process and enhancing the effectiveness of monetary policy transmission.
Bi-Annual Monetary Policy Reports
To achieve this goal, the central bank will publish bi-annual Monetary Policy Reports, which will include updated projections for key macroeconomic indicators. These reports will be released within two weeks of the July and January MPC meetings, providing stakeholders with timely and relevant information. The decision to publish these reports on a bi-annual basis is in line with the SBP’s Strategic Plan- Vision 2028, which aims to enhance transparency and stakeholder confidence.
Enhancing Transparency and Confidence
The publication of bi-annual Monetary Policy Reports is a significant step towards adopting an inflation targeting regime. By providing regular updates on macroeconomic indicators, the SBP aims to anchor inflation expectations and enhance the effectiveness of monetary policy transmission. This move is expected to increase institutional transparency and instill greater stakeholder confidence in financial planning over a longer period.
Advance Calendar of MPC Meetings
The SBP has also released the advance calendar of MPC meetings for the full-year FY26, which includes the dates for the first meeting of the current fiscal year on July 30, 2025. The MPC will meet on the following dates: September 15, October 27, and December 15 in 2025, and January 26, March 9, April 27, and June 15 in 2026. In case of any unforeseen events, a new date will be communicated in due course.
Conclusion
In conclusion, the State Bank of Pakistan’s decision to publish bi-annual Monetary Policy Reports and release the advance calendar of MPC meetings is a positive step towards increasing transparency and stakeholder confidence. By providing regular updates on macroeconomic indicators and anchoring inflation expectations, the SBP aims to enhance the effectiveness of monetary policy transmission and adopt an inflation targeting regime. This move is expected to have a positive impact on the economy and increase confidence among stakeholders.
