KARACHI: The State Bank of Pakistan (SBP) held its policy rate steady at 11 per cent on Monday for the third consecutive time, as policymakers balanced the inflationary impact of flood-damaged crops against the backdrop of a fragile economic recovery.
Since June 2024, the central bank had reduced the interest rate by 1,000 basis points (from 22% to 11%) over seven successive intervals. However, the rate has remained unchanged at 11% since May 2025.
The move disappointed many in the business community, who had been anticipating a further cut to stimulate investment and growth.
“The Monetary Policy Committee decided to keep the policy rate unchanged at 11 per cent in its meeting held on September 15, 2025,” the SBP said on its website, noting that a detailed statement would follow shortly.
