The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) announced on Monday that it will keep the policy rate at 22%. This marks the sixth meeting in a row without any change in the rate.
This decision, made unanimously, was expected by most market watchers. The Committee noted improvements in both inflation and the external position, attributing this to effective stabilization measures amid a moderate economic recovery.
However, inflation remains high, which continues to be a concern.
Global commodity prices have stabilized, and global growth is steady, but recent geopolitical events add uncertainty to the outlook. Upcoming budget measures could also affect inflation in the near term.
The MPC reiterated its goal of reducing inflation to a target range of 5–7% by September 2025. To achieve this, it plans to stick with its current monetary policy approach.
