The State Bank of Pakistan (SBP) has announced that the Monetary Policy Committee (MPC) has decided to maintain the policy interest rate at 11 percent for the next two months. The announcement came during a press conference held by the SBP Governor after the latest MPC meeting.
Explaining the decision, the SBP Governor said that current economic indicators do not support a change in the interest rate at this time. Therefore, the committee opted to keep the rate unchanged to maintain financial stability and control inflation.
He added that inflation has shown signs of moderation, but further observation is needed before considering any rate cuts. For now, keeping the interest rate stable will help manage demand and price pressure in the economy.
Moreover, the Governor stated that economic recovery is slowly gaining momentum. However, external risks and uncertain global conditions still pose challenges, which require careful policy management in the coming months.
The SBP also emphasized that future decisions will depend on how inflation, external conditions, and economic activity evolve. The MPC will continue to review all factors before its next scheduled meeting.
This decision is part of the central bank’s broader strategy to ensure macroeconomic stability and support growth, while keeping inflation expectations in check during the ongoing fiscal year.