ISLAMABAD: The State Bank of Pakistan (SBP) has decided to keep the key policy rate unchanged at 11.5 per cent as the central bank weighs inflationary pressures, economic growth and external sector developments.
The decision was taken by the SBP’s Monetary Policy Committee (MPC) during its second meeting of the current fiscal year.
The central bank’s decision comes amid continued tensions in the Middle East, which have contributed to higher global oil prices and raised concerns over inflationary pressures.
While commercial banks had largely expected the policy rate to remain unchanged, some analysts had anticipated a 50-basis-point increase.
The MPC reviewed key economic indicators, including inflation, economic activity, the external account and developments in financial markets before deciding to maintain the existing interest rate.
The SBP had also kept the policy rate at 11.5 per cent at its June 15 meeting after raising it by 100 basis points in April.
The latest decision is being closely monitored by businesses, investors and financial markets for indications about the central bank’s future monetary policy direction.
The SBP has said its monetary policy stance is focused on keeping inflation within its medium-term target range of 5 to 7 per cent while supporting sustainable economic growth.
