KARACHI: The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Monday kept the key policy rate unchanged at 11.5 per cent.
The decision comes amid continued tensions in the Middle East, which have pushed up global oil prices and added to inflationary pressures.
While bankers had expected the central bank to maintain the status quo, some analysts had predicted a 50-basis-point increase in the policy rate.
The decision was taken by the SBP’s Monetary Policy Committee (MPC) at its second meeting of the current fiscal year.
The committee reviewed the latest economic conditions, including inflation, economic growth, external sector developments and other key financial indicators before deciding to retain the existing rate.
The SBP had previously kept the policy rate unchanged at 11.5% at its June 15 meeting, after raising it by 100 basis points to 11.5% in April.
The latest decision is being closely watched by businesses, investors and financial markets for signals about the future direction of monetary policy.
The central bank has maintained that its monetary policy stance is aimed at keeping inflation within the medium-term target range of 5–7% while supporting sustainable economic growth.
