SBP Keeps Interest Rate Unchanged At 11% For Next Two Months

Abdullah Hussain (@Abdulla99267510) Published September 15, 2025 | 03:39 PM

Monetary Policy Committee (MPC) reviews latest economic indicators and unanimously opts to maintain policy rate at its existing level

KARACHI: (UrduPoint/UrduPoint / Pakistan Point News-Sept 15th, 2025) The State Bank of Pakistan (SBP) on Monday announced its monetary policy, deciding to keep the benchmark interest rate unchanged at 11 percent for the next two months.

In its statement, the central bank said that the Monetary Policy Committee (MPC) reviewed the latest economic indicators and unanimously opted to maintain the policy rate at its existing level.

The decision, according to the SBP, was taken to ensure a balance between controlling inflationary pressures and supporting economic stability.

This is the third consecutive announcement in which the SBP has kept the rate steady at 11 percent, following similar decisions in June and July. The central bank noted that while inflation has shown signs of moderation, uncertainties in global oil prices, import dynamics, and exchange rate pressures continue to pose risks to the economic outlook.

The MPC highlighted that maintaining the current policy stance will help anchor inflation expectations while giving space for growth recovery.

The committee added that fiscal consolidation measures and external sector stability are crucial to complement monetary policy efforts.

Analysts say the decision reflects a cautious approach by the SBP, as policymakers seek to avoid disrupting the fragile economic recovery.

A premature cut, they argue, could reignite inflationary pressures, while an increase might dampen already weak investment and consumption demand.

The SBP also reaffirmed its commitment to closely monitoring domestic and global developments, including commodity price movements, geopolitical tensions, and monetary policy shifts in advanced economies, which could impact Pakistan’s external accounts and financial stability.

The next monetary policy review is scheduled for November, where the SBP is expected to reassess its stance based on updated data on inflation, growth, and external balances.