Banking deposits rise despite interest rate cut: SBP

KARACHI: Despite a recent interest rate in last few months, reduction by the State Bank of Pakistan, banking deposits continued to grow, according to the central bank.

The banking deposits increased by 11.6 in May 2025, reaching a total of Rs 32,757 billion, up from Rs 29,349 billion recorded in May 2024. This marked a significant increase of Rs 3,408 billion on year-to-year basis.

The SBP also reported a monthly rise of Rs 441 billion in deposits from April to May 2025.

Earlier on June 16, the SBP announced to keep the interest rate unchanged at 11 per cent.

The central bank took the decision in its Monetary Policy Committee (MPC) meeting. “At its meeting today, the committee decided to keep the policy rate unchanged at 11%,” according to the MPC statement.

It noted the increase in inflation in May to 3.5 percent y/y was in line with its expectation, whereas core inflation declined marginally.

The monetary policy committee maintained that global oil prices have rebounded sharply, ‘reflecting the evolving geopolitical situation in the Middle East and some ease in US-China trade tensions’.

The MPC estimated that the real interest rate remains adequately positive to stabilise inflation within the target range of 5 – 7%.