KARACHI – State Bank of Pakistan (SBP) decided to maintain the policy rate at 11 percent, citing inflationary pressures and the economic impact of recent floods.
In a statement shared on social media platform X, the central bank said, “The Monetary Policy Committee decided to keep the policy rate unchanged at 11 percent in its meeting held on October 27, 2025.”
The benchmark interest rate has remained steady since May, despite persistent calls from trade and industry leaders for a reduction to support business activity and investment.
Financial analysts had widely anticipated the SBP’s decision to hold the rate, pointing to two key factors behind the move — the destruction caused by floods in Punjab and Khyber Pakhtunkhwa, and rising price pressures in the economy.
According to recent data, the Sensitive Price Index (SPI) climbed by 5 percent during the week ending October 23, mainly due to higher food costs. Experts warned that these flood-related supply disruptions could push up the Consumer Price Index (CPI) in the coming months, further complicating the inflation outlook.
Despite growing pressure from the business community, the SBP appears focused on maintaining monetary stability amid uncertain economic conditions and supply-side shocks.
