SBP's credibility at stake: Social Media Roundup
Monetary policy in the age of social media influencers
THE T-bill auction results on Wednesday underscore that the State Bank’s credibility is at its lowest point at the moment.
— Dawn Editorial
If that’s not damning, BR editorial uses “at odds with basic economic logic”, “inexplicably” and “baffling” to describe the MPS.
…The argument is thus that as borrowing costs rise growth would accelerate — a statement at odds with basic economic logic
The MPS further notes that the reason for the rate rise is to “counter inflationary pressures and ensure that growth remains sustainable”, adding even more inexplicably that “recent data releases confirm that the emphasis of monetary policy on moderating inflation and the current account deficit remains appropriate” — baffling because…..
— BR Editorial
Monetary Policy “Influencer”
SBP’s media blitz if you are keeping track
Nov 19: RB interview to Kamran Khan
Nov 20: RB interview to The Profit
Nov 23: RB interview to FT
Nov 23: RB pens Op Ed for Dawn
Nov 24: RB interview to CNBC
Nov 29: SBP now issues “clarification to dispel misinterpretation circulating in certain sections of the media about previous monetary policy decisions”
Dec 6: Deputy Governor Murtaza Syed pens an Op Ed for Business Recorder
Dec 14: Governor RB goes on Shahzeb Khanzada show to explain Monetary Policy Statement.
Dec 17: Governor RB goes on Bloomberg TV and talks about monetary policy.
I am flummoxed, as I say in the below tweet
Despite all the PR, the message just isn’t getting across to the market.
From now on, the SBP governor is to be known as “monetary policy influencer”
Unwarranted Confusion
Unfortunately, I didn’t attend the briefing by Deputy Governor mentioned below.
Behind the scenes of MPC
This is gold. If you don’t follow @abay_insaan_ban, you should definitely follow him. Just don’t take his investment advice.
If that's your best, your best won't do
I will update this later with the dates, but SBP has been unpredictable lately. It is hard to take SBP seriously.
Even Bloomberg TV, where the Governor talked about the “pause”, didn’t buy it.
But he is trying his best to play with the cards that he has been dealt.
Ariba and Uzair discuss the MPS and Bloomberg interview at 37:50 mark.
Now we know who won’t be getting the call to interview SBP Governor anymore.
Anyway, it’s the weekend, so I leave you with this. When the time comes, you have to decide which team are you on.
Have a great weekend, everyone. See you next week.