State Bank of Pakistan keeps the policy rate unchanged at 12%
KARACHI ( WEB NEWS )
The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) kept the policy rate unchanged at 12% on Monday.
The central bank announced the interest rate for the next two months. The MPC had slashed the policy rate by 10 percent in its previous six sessions. In January 2025, it decreased the rate by one percent to 12pc.
However, experts were expecting a decrease in policy rate to further accelerate business activities in the country.
In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.
The policy rate was reduced to 12pc after slashing it by 1,000bps from 22pc since June 2024.
The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.
Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.