SBP slashes interest rate by 50 basis points in new monetary policy

KARACHI: The State Bank of Pakistan (SBP) has slashed the interest rate by 0.5 per cent to fix the policy rate at 10.5 per cent.

The central bank in its announcement of the new monetary policy slashed interest rate by 50 basis points as experts were expecting the interest rate likely to remain unchanged.

In previous four policy rate announcements the bank has kept the interest rate unchanged.

The Monetary Policy Committee in its meeting by the bank’s Governor conduct a detailed review of domestic and global economic conditions, inflation trends, and growth indicators.

As per the SBP’s report, monthly inflation in November 2025 stood at 6.1 per cent, while the current account deficit of the country from July to October recorded $733 million during the period.

The SBP in its previous policy announcement kept the interest rate unchanged at 11 per cent. “The interest rate has been kept unchanged in view of the existing inflation levels and recent floods in the country”, central bank said in a statement in October.