KARACHI: The State Bank of Pakistan (SBP) has decided to keep the benchmark interest rate steady at 11 per cent for the next six weeks, signaling a cautious stance as the country continues to grapple with inflation and external sector challenges.
The decision was announced following a meeting of the Monetary Policy Committee (MPC) chaired by Governor Jameel Ahmad in Karachi, where members reviewed key indicators such as inflation, foreign reserves, and the balance of payments.
According to the SBP, the policy rate will remain unchanged to strike a balance between curbing inflationary pressures and supporting a gradual economic recovery.
The central bank noted that its decision was shaped by several factors — including persistent price hikes, the economic impact of recent floods, and policy advice from the International Monetary Fund (IMF) under Pakistan’s ongoing stabilization program.
In a statement, the SBP said that maintaining the current rate would help anchor inflation expectations and avoid placing additional strain on growth momentum.
The MPC also reviewed developments in the foreign exchange market, global oil prices, and Pakistan’s external account position. It highlighted concerns over the widening trade deficit and sluggish export growth, both of which continue to weigh on the country’s external stability.
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