KARACHI: The State Bank of Pakistan (SBP) on Saturday kept the interest rate unchanged at 5.75 percent for the next two months. The central bank says that the year-on-year consumers price index (CPI) inflation rose to 3.6 percent in August 2016 from 1.8 percent in August 2015, while the average inflation during the first two months of the current fiscal year had almost doubled than that of the same period last year. Similarly, the core inflation (ie non-food, non-energy and the 20 percent trimmed mean) during this period was also higher than the last year. The expected pick up in domestic demand is largely going to determine the inflation path in the remaining months of the current fiscal year.