State Bank Keeps Interest Rate Unchanged at 11% for Fourth Consecutive Time

Karachi: The State Bank of Pakistan (SBP) has decided to maintain the policy interest rate at **11%** for the fourth consecutive meeting, reflecting a cautious monetary stance amid persistent inflationary concerns.

According to the central bank’s newly announced **Monetary Policy Statement**, the policy rate will remain unchanged at 11%, a level first set on **May 5**, when the SBP reduced the rate by one percentage point from 12% to 11%.

Market analysts had widely predicted that the central bank would keep the rate steady due to recent inflationary pressures stemming from **flood-related disruptions** and supply chain challenges. Economists noted that the SBP appears to be prioritizing **price stability and financial discipline** before considering further easing measures.

On the other hand, **business leaders and industrial associations** had urged the central bank to reduce the interest rate by at least two percentage points — from 11% to 9% — arguing that high borrowing costs are hurting investment and production.

The SBP’s decision signals a **“wait-and-see” approach**, balancing the need to support economic recovery with the necessity of controlling inflation and maintaining currency stability.