State Bank Cuts Interest Rate by 50 Basis Points, Sets New Rate at 10.50%

Karachi: The State Bank of Pakistan (SBP) has announced a reduction in the monetary policy interest rate by 50 basis points. Following the central bank’s announcement, the new policy rate has been set at 10.50%.

Economic analysts had expected the SBP to maintain the rate at 11 percent, but the Monetary Policy Committee surprised the market by implementing the cut.

Previously, the State Bank had reduced the interest rate by 100 basis points in May 2025, after which the rate remained steady at 11 percent for several consecutive months. This latest decision reflects the central bank’s ongoing measures to manage economic growth and inflation.