SBP Holds Rate at 11% Amid Inflation, Stability Forecasts

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KARACHI: The State Bank of Pakistan (SBP) on Monday announced that the policy interest rate would remain unchanged at 11 percent.

Governor Jameel Ahmad made the announcement while unveiling the new monetary policy, confirming that the Monetary Policy Committee (MPC) agreed to maintain the current rate.

According to a survey by financial institutions, 85 percent of participants had anticipated the rate would stay at 11 percent, while 68 percent believed it should not be raised before December 2025.

The report further indicated that 46 percent of respondents expect the policy rate to drop to 10 percent by June 2026, whereas 27 percent foresee a single-digit rate by mid-2026.

The survey also projected that average inflation will remain between 6 to 7 percent in the fiscal year 2026, and the rupee will trade between Rs282 and Rs285 per US dollar by December 2025.

The SBP governor is expected to announce the fourth monetary policy of the fiscal year on December 15.

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