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The State Bank of Pakistan (SBP) has announced its decision to keep the benchmark policy rate unchanged at 11% following the Monetary Policy Committee (MPC) meeting on September 15, 2025. This decision reflects the SBP’s cautious approach amid ongoing economic conditions. The policy rate was last changed in May 2025, when it was cut by 100 basis points.
The SBP’s decision comes as major global central banks navigate their own policy paths. In the US, the Federal Reserve is widely expected to initiate an interest rate cut in its upcoming meeting, with market forecasts pointing to a 25 basis point reduction. The European Central Bank (ECB) recently held its key interest rates steady, with the main refinancing operations (MRO) rate at 2.15%, signaling a pause after a period of easing.
Meanwhile, in Asia, the Reserve Bank of India (RBI) has also maintained its repo rate at 5.50% since its June 2025 cut, with analysts suggesting further cuts may not be imminent. China’s central bank has adopted a “moderately loose” monetary policy stance, and recent data has prompted calls for more stimulus to boost a slowing economy.
The SBP’s move to hold the rate steady at 11% suggests a focus on maintaining stability and managing inflationary pressures, while awaiting further clarity on both domestic and international economic trends.
