The State Bank of Pakistan (SBP) maintained its policy rate steady at 11 per cent on Monday for a third straight meeting as policymakers weighed inflation risks from flood-hit crops against a fragile economic recovery.
After slashing the interest rate by 1,000bps from 22pc since June 2024 in seven intervals, the central bank has maintained it at 11pc since May. However, the business community had expressed its intense disappointment over the decision.
“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 on its website, adding that a detailed statement will be released shortly.
Last month, Finance Minister Muhammad Aurangzeb noted that there was a “room” for lowering the policy rate by the end of this year, but stressed that it was the purview of the SBP and its MPC.
A recent survey conducted by the Chartered Financial Analyst (CFA) Institute revealed that 92pc of respondents expected the interest rate to remain unchanged, despite trade and industry groups calling for further cuts to stimulate economic activity.
The MPC had kept the rate steady at its last meeting in July, citing potential inflation risks from rising energy prices and geopolitical tensions, even though inflation had been moderating.
More to follow
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