Pakistan central bank holds policy rate at 11.5% as inflation fight continues

The State Bank of Pakistan (SBP) has kept its benchmark policy rate unchanged at 11.5%, according to a statement from its Monetary Policy Committee (MPC).

The decision, announced Monday, aligns with market expectations that the central bank would maintain its restrictive monetary stance amid ongoing inflationary pressures.

5%, the SBP signals that it does not yet see sufficient evidence of sustained disinflation to justify an easing cycle.

The MPC's vote to hold rates steady reflects a continued prioritization of price stability over immediate economic stimulus.

By keeping the policy rate at 11.5%, the SBP signals that it does not yet see sufficient evidence of sustained disinflation to justify an easing cycle.

This stance maintains high borrowing costs for both the corporate sector and households, impacting investment decisions and consumer spending power.

The decision comes as global central banks navigate a complex landscape of diverging economic data.