The State Bank of Pakistan (SBP) is set to announce its new monetary policy today (Monday), with analysts widely expecting the central bank to keep the key interest rate unchanged at 11 percent amid stable inflation and ongoing economic challenges.
According to the SBP, the Monetary Policy Committee (MPC) meeting will be chaired by Governor Jameel Ahmad, who will lead a detailed review of domestic and global economic trends, inflation data, and growth indicators before the policy announcement.
Economists believe the central bank is likely to maintain its current stance due to moderate inflation and external sector improvements. “Given the current inflation levels and fragile economic conditions, there is limited scope for a rate cut,” experts observed.
As per the SBP’s latest data, monthly inflation stood at 5.6 percent in September 2025, while the current account recorded a surplus of $110 million during the same month. In contrast, August 2025 saw inflation at 3 percent, and the current account deficit for July was reported at $240 million.
The previous monetary policy, announced on September 15, also kept the policy rate unchanged at 11 percent. At that time, the SBP cited stable inflation and external balances as reasons for maintaining the status quo, despite the economic disruptions caused by recent floods.
Financial experts have reiterated that while inflation remains under control, flood-related economic losses and slow growth continue to constrain the central bank’s ability to ease monetary conditions.
A detailed statement outlining the MPC’s latest decision and future outlook is expected to be released later today on the State Bank of Pakistan’s official website.
