SBP retains policy rate at 11.5 percent

KARACHI: State Bank of Pakistan (SBP) on Monday decided to keep the policy rate unchanged at 11.5 percent, ARY News reported.

SBP Governor Jameel Ahmed announced the decision during a press conference.

The central bank announced the monetary policy after its Monetary Policy Committee (MPC) unanimously decided to retain the policy rate at 11.5 percent.

The Committee noted the following key developments since its last meeting.

First, SBP’s FX reserves surpassed the end-June 2026 target of $18 billion, largely due to continued FX purchases amidst a small current account deficit in FY26, and realization of planned official inflows.

Second, Pakistan’s sovereign credit rating was upgraded to “B” by Standard & Poor’s.

Third, inflation expectations eased for both consumers and businesses in the latest sentiment surveys.

Fourth, FBR met its revised tax revenue target for FY26.

Lastly, the IMF increased its global inflation forecast for both CY26 and CY27 in the latest World Economic Outlook amidst an increase in global commodity prices.