SBP keeps key interest rate unchanged at 11.5%

The State Bank of Pakistan (SBP) on Monday kept its benchmark policy rate unchanged at 11.5 per cent, citing inflationary pressures and uncertainty following the Middle East crisis.

The decision was announced by SBP Governor Jameel Ahmed after a meeting of the Monetary Policy Committee (MPC).

"The MPC has decided to keep the policy rate unchanged at 11.5pc," Ahmed said during a press conference.

He said the committee had also reviewed projections for economic growth, inflation and the external sector for the next six months.

According to the governor, average inflation remained at 5.5pc between July and February, within the government's target range of 5pc to 7pc, before rising following the Middle East crisis.

Ahmed said inflation stood at 11.7pc in May and 11.1pc in June, adding that the central bank expected price pressures to ease within the next one to two months if there was no further regional escalation.

Market analysts had widely expected the central bank to leave the policy rate unchanged, with surveys conducted by brokerage firms indicating that more than 90 per cent of stakeholders anticipated no change.

The SBP cut the policy rate by 50 basis points to 10.5pc in December 2025 before raising it by 100 basis points to 11.5pc in April this year. The central bank has maintained the rate since then despite repeated calls from the business community for a reduction to support economic activity.