SBP keeps policy rate unchanged at 11pc amid stable economic indicators

The State Bank of Pakistan (SBP) on Monday maintained its benchmark interest rate at 11 per cent, saying the current stance remains appropriate to sustain price stability.

In a statement, the SBP said the committee observed that headline inflation climbed sharply to 5.6 per cent in September, while core inflation stayed flat at 7.3 per cent. The MPC noted that the impact of recent floods on economic activity was less severe than initially feared, with limited crop losses and minimal supply disruptions.

According to the statement, economic momentum has continued to build, supported by strong growth in key indicators. The SBP said the macroeconomic outlook has improved since its last review, though it cautioned that risks remain due to volatile global commodity prices, weak export prospects amid tariff changes, and possible food supply pressures within the country.

The Monetary Policy Committee decided to keep the policy rate unchanged at 11 percent in its meeting held on October 27, 2025. For details: https://t.co/URvOQJGGvQ pic.twitter.com/ghl06jfR69

— SBP (@StateBank_Pak) October 27, 2025

“In this backdrop, and considering the ongoing impact of earlier rate reductions, the MPC viewed today’s decision as appropriate to maintain price stability,” the statement read.

The central bank also outlined several important developments since its previous meeting:

The Pakistan Bureau of Statistics revised its GDP growth projection for FY25 upward to 3 per cent, compared to the earlier estimate of 2.7 per cent.