Central bank says decision reflects current economic conditions and aims to maintain financial stability
KARACHI: The State Bank of Pakistan (SBP) has decided to keep its key policy rate unchanged at 10.5 percent for the next two months following its latest monetary policy review.
The decision was announced Monday after a meeting of the central bank’s Monetary Policy Committee (MPC), which evaluates inflation trends, economic indicators and financial conditions before determining interest rates.
In a statement, the central bank said maintaining the current rate reflects its assessment of prevailing economic conditions and the need to sustain financial and price stability.
A spokesperson for the SBP said the benchmark rate will remain at 10.5pc during the upcoming two-month period as policymakers continue to monitor developments in inflation and economic activity.
The policy rate commonly known as the benchmark interest rate significantly influences borrowing costs for businesses and consumers. It also plays a crucial role in shaping investment, spending and overall economic growth.
Central banks typically adjust policy rates to control inflation, support economic expansion and stabilize financial markets.
The SBP reviews the rate periodically through monetary policy announcements, making changes when necessary to balance inflation pressures with growth objectives.
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