Islamabad: The State Bank of Pakistan has announced to keep interest rate at 11 percent in its new monetary policy. The central bank says that the pace of inflation in the country is decreasing, and inflation was limited to 3.5 percent in May 2025, which is in line with the government target. According to the State Bank, the inflation situation is improving further and this rate may come between 5 and 7 percent by the end of this year.
The decision to keep interest rates unchanged comes in the wake of rising global oil prices, regional tensions, and pressure on foreign exchange reserves. According to the State Bank, the GDP growth target for the fiscal year 2025-26 has been set at 4.2 percent, which is much better than the 2.7 percent in the previous fiscal year.
The central bank termed this as a “wait and see” period and said that further decisions in the future will be taken in the light of economic indicators and the global situation. The move is expected to control inflation and improve the investment climate.
