KARACHI: The SBP policy rate remained unchanged at 11.5% on Monday, July 27, as the central bank assessed elevated inflation, uncertain oil prices and risks from the Middle East conflict.
The State Bank of Pakistan’s Monetary Policy Committee announced the decision after reviewing the outlook for inflation and economic growth.
The decision matched market expectations. Ismail Iqbal Securities had said market participants widely expected the central bank to maintain the 11.5% rate.
The brokerage expected the SBP to maintain a cautious, data-dependent policy stance. It cited the recent rebound in oil prices and heightened geopolitical uncertainty in the Middle East.
The central bank would probably seek greater clarity on external risks and inflation trends before changing its monetary policy position.
The SBP had also maintained the policy rate at 11.5% during its previous meeting. At the time, the central bank said policymakers were evaluating how the Middle East conflict could affect Pakistan’s inflation and economic growth.
Monday’s announcement marked the first Monetary Policy Committee meeting under the SBP’s advance calendar for fiscal year 2026-27. The central bank scheduled its next monetary policy decision for September 14.
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The SBP has also increased the number of post-meeting press conferences from two to four annually. The governor will hold briefings after the committee’s meetings in July, October, January and April.
