The State Bank of Pakistan (SBP) has announced its monetary policy for the final quarter of the current fiscal year, deciding to keep the benchmark interest rate unchanged at 11.5%.
The decision comes immediately after the federal budget and follows a detailed review of economic indicators, inflation trends, geopolitical developments and recent changes in global energy markets.
The decision was taken during a meeting of the Monetary Policy Committee (MPC) held at the State Bank headquarters in Karachi.
According to the SBP, the committee reviewed key economic indicators and prevailing geopolitical conditions before deciding to maintain the policy rate at 11.5%.
The Monetary Policy Committee decided to keep the policy rate unchanged at 11.5 percent in its meeting held on June 15, 2026.#SBPMonetaryPolicy
— SBP (@StateBank_Pak) June 15, 2026
The latest announcement marks the first monetary policy decision following the presentation of the federal budget.
Previous policy saw rate increase
The central bank noted that the benchmark interest rate had been increased by one percentage point in the previous monetary policy review.
After assessing current economic conditions, however, policymakers decided to leave the rate unchanged for now.
Most economists and market analysts had expected the central bank to maintain the existing rate, according to surveys conducted before the announcement.
Middle East tensions
In its statement, the State Bank said the situation in the Middle East has created new challenges for the economy.
The central bank pointed out that regional tensions had contributed to uncertainty in global markets and affected economic projections.
According to the SBP, these developments were carefully considered during the policy review process.
Rising oil prices push inflation higher
The Monetary Policy Committee observed that inflation had increased due to pressure from higher oil prices. The central bank said rising energy costs had added to inflationary concerns and influenced the overall economic outlook.
Inflation trends remained a key factor in the committee’s deliberations before reaching its final decision.
Impact of Iran-US agreement
The SBP said it conducted a detailed assessment of the effects of the Iran-US agreement, the subsequent decline in international oil prices and the implications of the federal budget measures.
Officials reviewed how easing geopolitical tensions and lower energy prices could affect inflation, economic activity and financial stability in the coming months.
The committee also examined the broader impact of these developments on Pakistan’s economic outlook.
Focus on economic stability
By keeping the policy rate unchanged, the State Bank signaled a cautious approach as it balances inflation risks with economic growth considerations.
The central bank said its decision was based on a comprehensive assessment of domestic and international factors affecting the economy.
Market participants will now closely watch future inflation data, energy prices and economic indicators ahead of the next monetary policy review.
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