ISLAMABAD: The State Bank of Pakistan (SBP) is set to announce its new monetary policy today with expectations to maintain its policy rate at 11.5%. Governor SBP Jamil Ahmad is announcing the monetary policy during a press conference in Karachi.
The policy rate has remained at 11.5% since April, when the Monetary Policy Committee (MPC) increased it by 100 basis points, effective April 27, 2026. The central bank had cited rising risks to Pakistan’s macroeconomic outlook due to the intensifying conflict in the Middle East.
MPC likely to maintain status quo
The MPC later decided to keep the policy rate unchanged during its June meeting.
Analysts expect the committee to maintain the status quo again, reflecting the central bank’s cautious stance amid changing domestic and external economic conditions.
They said renewed geopolitical tensions in the Middle East could create additional economic challenges for Pakistan.
Oil price volatility raises economic risks
Meanwhile, increasing volatility in global oil prices has also added uncertainty to the country’s economic outlook.
Analysts believe these developments could influence inflation, external financing needs and the balance of payments.
Therefore, the MPC is widely expected to leave the policy rate unchanged at 11.5% as it assesses the impact of global developments on Pakistan’s economy.
The monetary policy decision will reflect the central bank’s assessment of inflation and emerging challenges to national economic stability.
