SBP Keeps Policy Rate Steady Amid Inflation Worries
The State Bank of Pakistan (SBP) has decided to keep its benchmark policy rate unchanged at 11.5% amid concerns over elevated inflation and uncertainty in global oil prices.
The decision was made by the Monetary Policy Committee (MPC), which cited improved macroeconomic indicators as a result of earlier easing of regional tensions, but noted that renewed geopolitical tensions in the Middle East pose significant risks to the economy.
According to the SBP, Pakistan's inflation eased to 11.1% year-on-year in June 2026, down from 11.7% in May, largely due to lower global energy prices and favorable electricity tariff adjustments.
The MPC warned that rising global commodity prices, increasing production costs, and domestic food price pressures are likely to keep inflation above the target range over the coming months, but expect it to gradually decline and stabilize near the upper end of the 5% to 7% target range by June 2027.