The State Bank of Pakistan (SBP) on Monday decided to maintain the benchmark interest rate at 11 percent for the next one and a half months, keeping its focus on stabilizing the economy amid persistent inflation and external challenges.
The Monetary Policy Committee (MPC) chaired by SBP Governor Jameel Ahmad met in Karachi to review key economic indicators, including inflation trends, foreign exchange reserves, and the balance of payments position.
After a detailed assessment, the central bank announced that the policy rate would remain unchanged at 11 percent, reflecting a cautious approach to ensure economic stability while supporting gradual recovery.
Key factors behind decision
According to the SBP, the decision was influenced by multiple factors, including rising inflation, flood-related economic losses, and guidelines from the International Monetary Fund (IMF).
The central bank emphasized that maintaining the current rate would help contain inflation expectations while preventing unnecessary pressure on economic growth.
During the meeting, the MPC closely examined the exchange rate fluctuations, global oil price trends, and the status of Pakistan’s foreign exchange reserves. The committee also discussed import and export performance, along with the widening trade deficit, which continues to challenge external stability.
