SBP Interest Rate: 11% Maintained | Pakistan Business News
The State Bank of Pakistan (SBP) made a decisive move, holding the key policy rate steady at 11 percent, a decision that signals a cautious approach amid global economic uncertainty. This action reflects the SBP’s concerns about potential inflation risks, driven by escalating global commodity prices and escalating geopolitical tensions. After a period of significant monetary easing, the central bank is now carefully monitoring the economic landscape. Many experts anticipated a rate cut, but evolving global events shifted forecasts. Staying informed is essential; learn about how the State Bank’s decisions impact short-term interest rates and Pakistan’s economic outlook. News Directory 3 provides complete financial updates,which is excellent to stay ahead. Discover what’s next for the SBP after holding the interest rate.
Pakistan State Bank Holds Key Policy Rate Amid Global Uncertainty
Updated June 16, 2025
The State Bank of Pakistan (SBP) opted to hold steady the key policy rate, maintaining it at 11 percent. This decision, announced Monday, reflects concerns among analysts about potential inflation risks stemming from increasing global commodity prices and ongoing tensions between Iran and Israel.The central bank’s monetary policy committee is carefully monitoring the economic landscape.
This decision follows a period of monetary easing.Since June 2024, the SBP had aggressively lowered the policy rate by a cumulative 1,000 basis points, bringing it down from 22 percent.The most recent cut, implemented last month, brought the rate to its current level of 11 percent. The central bank’s policy rate impacts short-term interest rates.
initially, many brokerage firms anticipated another rate cut. However, the escalating situation in the Middle east, particularly the Israeli strikes, prompted a revision of these forecasts. The fear is that a broader conflict could trigger a sharp increase in oil prices, which would have a significant impact on Pakistan’s imported inflation and perhaps tighten crude supplies.
A recent snap poll conducted by Reuters revealed that a majority of respondents, 11 out of 14, expected the SBP to maintain the benchmark rate at 12 percent. Two respondents predicted a 100 basis-point cut, while one anticipated a 50 basis-point reduction. The State Bank of Pakistan’s monetary policy decisions are closely watched.
“There remains an upside risk of a rise in global commodity prices in light of geopolitical tensions, which could mark a return to inflationary pressures,” said Ahmad Mobeen, senior economist at S&P Global Market Intelligence.
What’s next
The State Bank of Pakistan will continue to monitor global economic developments and their potential impact on domestic inflation. Future monetary policy decisions will be data-driven and responsive to evolving economic conditions. the SBP aims to maintain price stability while supporting sustainable economic growth. the central bank’s policy rate is a key tool in managing the economy.