Policy rate stays at 11%, says SBP

The State Bank of Pakistan’s Monetary Policy Committee is meeting today under the chairmanship of the Governor to review the country’s economic situation. Following the meeting, the central bank will announce its decision through a press release.

Most economists, analysts, and investors expect the State Bank to keep the policy rate unchanged at the current level of 11%. However, some experts believe that recent economic challenges may push the bank toward a different decision. They argue that losses caused by devastating floods, growing fears of inflation, and ongoing economic review talks with the International Monetary Fund (IMF) could force the State Bank to raise the policy rate by 50 basis points.

Meanwhile, ahead of the monetary policy announcement, the Pakistan Stock Exchange has shown strong bullish momentum. Investor confidence led the market to rise by 1,148 points during today’s session, successfully crossing the historic mark of 155000 points. Analysts link this surge to expectations that the policy rate will remain stable, which supports business and investment activity.

The monetary policy decision carries significant importance for Pakistan’s economy, as it directly affects borrowing costs, investment trends, and inflation control. A stable policy rate is likely to encourage businesses and stock market growth, while an increase could help control inflation but may also slow down economic activity. As the meeting concludes, all eyes remain on the State Bank’s official announcement. Its decision will play a key role in shaping investor sentiment, guiding economic direction, and addressing the balance between growth and stability in the country.