SBP Keeps Key Interest Rate Unchanged at 11.5%

WEB DESK: The State Bank of Pakistan (SBP) on Monday kept its key policy interest rate unchanged at 11.5% following the latest meeting of its Monetary Policy Committee (MPC).

The central bank said the committee had decided to maintain the benchmark rate in view of prevailing economic conditions, signalling the continuation of its current monetary policy stance.

According to the SBP, the policy rate will remain at 11.5% as the central bank continues to closely monitor inflation, economic activity, exchange rate movements and other key macroeconomic indicators.

The decision follows the committee’s move in April to raise the benchmark interest rate to 11.5% in response to rising inflation, higher global oil prices, pressure on the exchange rate and growing concerns over Pakistan’s external account.

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The earlier increase marked a shift towards tighter monetary policy aimed at containing inflationary pressures and maintaining macroeconomic stability.

By keeping the policy rate unchanged, the central bank has indicated that it will continue assessing domestic and global economic developments before making any further adjustments to its monetary policy.