KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) decided to keep the policy rate unchanged at 12% for the next two months.
Previously, the MPC had reduced the policy rate by 10% over six sessions. In January 2025, it was cut by 1% from 13% to 12%. Experts had anticipated a further decrease to boost business activity, but the central bank opted for stability.
The SBP had previously slashed the policy rate by 1,000 basis points from 22% since June 2024, aligning with market expectations. The central bank governor emphasized that the decision was made after careful analysis. While inflation is expected to decline, core inflation remains a concern.
Key economic indicators such as strong remittance inflows and robust export growth are supporting the current account, providing some economic stability. The central bank continues to monitor inflation trends and economic performance before making further policy adjustments.
