Karachi, July 28: Pakistan’s central bank has decided to keep the benchmark policy rate unchanged at 11.5%, citing the need to maintain monetary stability while closely monitoring inflation, economic activity, and external sector developments.
The decision, announced after the Monetary Policy Committee’s meeting, reflects the State Bank’s assessment that the current interest rate remains appropriate to guide inflation toward its medium-term target while supporting the country’s ongoing economic recovery.
Officials noted that inflation has eased in recent months, but uncertainties surrounding global commodity prices, exchange rate movements, and domestic demand continue to warrant a cautious monetary policy stance. The central bank said it would continue to assess incoming economic data before making any future adjustments.
Financial markets had widely anticipated that the policy rate would remain unchanged, with analysts pointing to moderating inflation and improving foreign exchange reserves as factors supporting a wait-and-see approach.
Business groups welcomed the decision, saying a stable interest rate provides greater certainty for investment and financial planning. However, some industry representatives reiterated calls for gradual rate reductions in the coming months to lower borrowing costs and stimulate private-sector growth.
Economists believe the central bank’s decision reflects a balance between supporting economic expansion and ensuring that inflation remains under control. The Monetary Policy Committee reaffirmed its commitment to taking appropriate measures to preserve macroeconomic stability as domestic and global economic conditions evolve.
