SBP Announces New Monetary Policy, Interest Rate Stays at 11%

Karachi: The State Bank of Pakistan (SBP) has announced its latest monetary policy, keeping the benchmark interest rate steady at 11% for the next two months.

The SBP said the decision to keep the rate unchanged aims to support economic stability and monitor inflation trends in the coming months.

According to the SBP’s latest report, the Monetary Policy Committee (MPC) decided to maintain the current rate, citing a need to support economic stability while keeping inflation in check.

This marks the fourth consecutive meeting in which the central bank has decided not to change the policy rate. Earlier this year, on May 5, the SBP had reduced the rate by 1%, bringing it down from 12% to the current 11%.

The central bank stated that its decision reflects a balanced approach—aiming to encourage investment and growth while ensuring that inflation continues to decline toward its target range.

Economic analysts believe that the SBP’s decision to maintain the interest rate shows confidence in Pakistan’s improving economic indicators, including a stable exchange rate, easing inflationary pressures, and better external account management.

The next monetary policy announcement is expected after two months, depending on inflation data, fiscal developments, and global economic conditions.