SBP has decided to keep the policy rate unchanged at 11%

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has decided to keep the policy rate unchanged at 11%, during its latest meeting chaired by Governor Jameel Ahmad.

According to the SBP report, the policy rate has now remained stable for four consecutive monetary policy reviews — covering July, August, September, and October 2025.

The SBP had previously reduced the policy rate by 100 basis points in May 2025, bringing it down to 11%, after which the central bank adopted a wait-and-watch approach amid signs of stabilizing inflation and improving foreign reserves.

Economic analysts believe the decision reflects the central bank’s cautious optimism about inflation trends, while prioritizing macroeconomic stability and the revival of industrial activity.

The next review of the monetary policy is expected in December 2025, where the SBP will reassess inflationary pressures and growth indicators.