Karachi (HRNW)- The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has decided to keep the policy rate unchanged at 11.50 percent for the next one and a half months.
According to the committee, the decision was taken after a detailed review of the country’s economic conditions, inflation trends, and developments in global markets. Policymakers noted that despite growing hopes for peace in the Middle East, uncertainty remains due to fluctuations in international crude oil prices, which could impact inflationary pressures.
The committee stated that concerns regarding inflation have not completely subsided, as rising and volatile oil prices continue to pose risks to price stability.
In its assessment, the State Bank reviewed key economic indicators and external sector developments before deciding that maintaining the current policy rate was the most appropriate course of action under prevailing conditions.
It is worth noting that the previous monetary policy review was held on April 27, when the central bank increased the policy rate by 100 basis points to 11.50 percent, citing inflationary risks and external economic factors.
The latest monetary policy meeting was the final review of the 2025-26 fiscal year and was closely monitored by businesses, investors, financial institutions, and market participants for signals regarding the country’s economic outlook.
Following the committee’s decision, the benchmark interest rate will remain at 11.50 percent until the next policy review. Future monetary policy decisions will continue to depend on inflation trends, international oil prices, external economic developments, and overall macroeconomic conditions.
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