SBP maintains key policy rate at 11pc

Karachi: The State Bank of Pakistan (SBP) has announced to keep the key policy rate unchanged at 11 per cent.

In line with market expectations, the Monetary Policy Committee (MPC) of the central bank has decided to keep the policy rate unchanged at 11% on Monday.

“At its meeting today, the MPC decided to keep the policy rate unchanged at 11%,” the MPC said in a statement.

The MPC noted that the increase in inflation in May to 3.5% year-on-year (y/y) was in line with its expectation, whereas core inflation declined marginally.

“Going forward, inflation is expected to trend up and stabilize in the target range during FY26,” it said.

The MPC also assessed that economic growth is picking up gradually and is projected to gain further traction next year, supported by the still-unfolding impact of earlier policy rate cuts.