Web Desk: The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Monday maintained its key interest rate at 10.5%, pausing its easing cycle as rising global energy prices and regional tensions pose new inflation risks for the import-dependent economy.
“The Monetary Policy Committee has decided to keep the policy rate unchanged at 10.5%,” the State Bank of Pakistan (SBP) said on its website, adding that a detailed statement would be released soon.
The SBP has cut the key rate by a cumulative 1,150 basis points since mid-2024, from a record 22% in 2023, as inflation cooled sharply from multi-decade highs.
In its policy statement, the SBP said that the MPC decided to keep the policy rate unchanged as it observed that the macroeconomic outlook has “become quite uncertain following [the] outbreak of the war in the Middle East”.
