SBP keeps interest rate unchanged in new monetary policy

The State Bank of Pakistan (SBP) has kept the policy rate unchanged at 11bps in its new monetary policy announced on Monday, ARY News reported.

The Monetary Policy Committee (MPC) session, chaired by the Governor SBP met today to decide on the monetary policy.

“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, adding that a detailed statement will be released shortly.

Earlier, it was being assumed by economic experts that the policy rate would remain unchanged at 11 per cent due to the prevailing flood situation in the country.

The State Bank’s latest data shows that inflation stood at 3 per cent in August 2025, while the current account deficit for July was recorded at $240 million.

Experts believe that despite stable inflation, the economic challenges triggered by the floods leave little room for a rate cut.

In the last monetary policy announced in June 2025, the State Bank of Pakistan (SBP) kept the interest rate unchanged at 11 per cent.

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%.