State Bank Keeps Policy Rate Unchanged at 11.5%, Expects Inflation to Ease

The State Bank of Pakistan (SBP) has decided to keep the benchmark policy rate unchanged at 11.5 percent until the next monetary policy meeting. Speaking after the announcement, SBP Governor Jameel Ahmad said inflation had risen due to higher global oil prices, largely driven by the situation in the Middle East, but expressed confidence that inflationary pressures would ease in the coming months.

The governor said Pakistan’s current account recorded a deficit of $139 million, adding that the current account balance is expected to remain between 0 and 1 percent of GDP during the next fiscal year. He also noted that despite external debt repayments, the country’s foreign exchange reserves had continued to increase.

Jameel Ahmad said foreign exchange reserves are projected to reach $20 billion by December 2026, reflecting improving external sector stability. He added that inflation is expected to decline further over the next one to two months, supported by easing price pressures and prudent monetary policy.