SBP holds interest rate at 11.5pc amid growth concerns

The State Bank of Pakistan (SBP) has kept its policy rate unchanged at 11.5 per cent, maintaining the existing monetary policy stance amid

The State Bank of Pakistan (SBP) has kept its policy rate unchanged at 11.5 per cent, maintaining the existing monetary policy stance amid concerns over economic growth.

The decision was announced on Monday by SBP Governor Jameel Ahmed following a meeting of the Monetary Policy Committee (MPC).

The central bank’s decision was largely expected by financial market analysts. Most experts had predicted that the SBP would maintain the current rate to support macroeconomic stability while monitoring economic conditions.

Market surveys conducted by brokerage firms showed that more than 90 per cent of respondents expected the policy rate to remain unchanged. Only a small number of analysts had anticipated a possible increase.

The decision comes as Pakistan continues to balance economic stability with the need to encourage business activity and investment. Higher interest rates can help control inflation and support financial stability, but they can also increase borrowing costs for businesses and consumers.

The SBP had reduced its policy rate by 50 basis points to 10.5pc in December 2025. It later raised the rate by 100 basis points to 11.5pc in April 2026.

Since then, the central bank has maintained the rate at 11.5pc.

Business groups have continued to call for a significant reduction in borrowing costs. They argue that lower interest rates could help businesses expand operations, increase investment and support economic activity.

However, the central bank has opted for a cautious approach. Policymakers appear focused on maintaining overall economic stability while assessing inflation, growth and other financial indicators.