The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) has decided to keep the policy rate unchanged at 11% on Monday, warning of a spur in the inflation, reported 24NewsHD TV channel.
The MPS made the decision on Monday despite numerous calls for reducing the policy rate.
In the previous monetary police meeting, held on July 30, 2025, the committee decided to keep the policy rate unchanged at 11% as the inflation outlook was somewhat worsened in the wake of higher-than-anticipated adjustments in energy prices, especially gas tariffs.
The status quo is in line with market anticipations as analysts have expected that the MPC would continue to keep the police rate unchanged, as inflation is projected to increase due to recent flooding.
Market survey indicated that 72% of the market participants expect the rate to remain unchanged owing to recent floods, which may elevate food inflation and overall inflation in the coming months, amidst expected loss to crops and supply chain concerns.
Reporter Ashraf Khan