KARACHI - Consumer expectation surveys will facilitate the process of designing a forward-looking monetary policy in the country. “Such surveys will help us study the inflation expectations and economic confidence of households and their reaction to economic and policy decisions,” said SBP Governor Yaseen Anwar at the inaugural ceremony of the Centre for Survey Research.

He said that these expectation surveys are based on households’ perceptions about current as well as future economic conditions. ‘Expectations regarding inflation, interest rates, stock prices, and employment are important for policy formulation,’ he said, adding that this explains why many developed and developing countries are using household surveys for policy research purposes.

Anwar said that until recent times, a documentation of the expectations channel at the household level and one that is nationally representative of Pakistan was not available with either SBP or the private sector. It was this very fact which made it all the more important for the State Bank of Pakistan, being the central bank of the country, to enhance its efforts to collect information on expectations, he said and added: ‘this will allow us to undertake meaningful research, well-supported by first-hand knowledge of the situation in the country.’ Anwar said: ‘I am grateful to Institute of Business Administration for joining hands with State Bank of Pakistan in order to undertake this venture which is also being continuously peer-reviewed by international and domestic institutions.

I sanguinely believe that today’s inaugural ceremony will prove to be the start of a long-term relationship between both the institutions as well as a beneficial exercise for the national economy’. Speaking on the occasion, Director Institute of Business Administration, Dr. Ishrat Husain recognized the efforts of State Bank of Pakistan in formulating consumer expectation survey and also appreciated it for undertaking such a research of national level and importance.

He said that both SBP & IBA will keep working together in future to build such economic intelligence tools with a view to developing a better understanding of country’s economy.