The Monetary Policy Committee of the State Bank of Pakistan has announced maintaining the interest rate at 10.5 percent while issuing a new monetary policy. The committee says that this decision is being taken in view of the current economic conditions and the global situation.
According to the State Bank, the committee is continuously reviewing economic indicators and is closely monitoring the situation in the coming months. The central bank says that some reduction in the inflation rate has been seen in recent months; however, concerns still exist due to global conditions.
The Monetary Policy Committee says that since June 2024, there has been a significant reduction in interest rates. During this period, the policy rate has come down from 22 per cent to 10.5 per cent, which is being described as a positive development for the economy.
The State Bank says that the recent economic data is mostly in line with the estimates presented in the January policy meeting. However, uncertainty in the global economy is increasing after the war situation in the Middle East.
The Monetary Policy Committee says that the current geopolitical conditions are affecting global markets. In particular, concerns about rising oil prices may pose a challenge to Pakistan’s economy.
The central bank says that the initial assessment of economic indicators for the fiscal year 2026 is still within expected limits, but risks are increasing. That is why the committee is adopting a cautious strategy.
The State Bank has made it clear that its main objective is to control inflation and maintain economic stability. The committee said that appropriate measures will continue to be taken to ensure price stability.
Economists say that the decision to maintain interest rates may prove to be somewhat positive for business activities. According to them, if inflation remains under control, there may be a possibility of further reduction in interest rates in the future.
