SBP Keeps Interest Rate Unchanged in New Monetary Policy

SBP Keeps Interest Rate Unchanged in New Monetary Policy

Karachi: The State Bank of Pakistan (SBP) on Monday announced that it has decided to keep the policy rate unchanged at 11 per cent, in its latest monetary policy meeting.

The Monetary Policy Committee (MPC), chaired by SBP Governor, reviewed the economic situation before confirming that the interest rate would remain steady.

“The Monetary Policy Committee decided to keep the policy rate unchanged at 11 per cent in its meeting held on September 15, 2025,” the SBP said in a statement, adding that a more detailed outlook would be released shortly.

Economic experts had widely expected the rate to remain unchanged, given the flood crisis affecting large parts of the country and its impact on economic activity.

According to the central bank’s latest data, inflation fell to 3 per cent in August 2025, while the current account deficit stood at $240 million in July. Analysts argue that while inflation is under control, the broader challenges triggered by floods leave limited space for a rate cut.

In its previous policy announcement in June 2025, the SBP also kept the interest rate steady at 11 per cent. At that time, the bank noted that inflation had risen slightly to 3.5 per cent year-on-year in May, but core inflation showed a marginal decline.

The MPC added that global oil prices had rebounded sharply due to geopolitical tensions in the Middle East and signs of easing in US-China trade relations.

The committee reiterated that the real interest rate remains adequately positive to help stabilize inflation within its medium-term target range of 5–7 per cent.