Pakistan's Central Bank Maintains Interest Rate Amid Rising Global Tensions
By Editor • September 14, 2026 • 1 min read
The State Bank of Pakistan (SBP) has decided to keep its key policy interest rate unchanged at 11.5 percent, a move announced by the Monetary Policy Committee (MPC) on Monday. This decision comes in the face of rising global oil prices and persistent inflation, driven by ongoing conflicts in the Middle East.
The MPC reached this decision with a majority vote, noting that while external pressures have increased, domestic economic indicators remain largely in line with expectations. Headline inflation saw a rise to 11.1 percent year-on-year in August, up from 9.2 percent in July, although core inflation was slightly below what the MPC had anticipated.
Despite the challenging geopolitical climate, the MPC highlighted positive developments, including an upgrade of Pakistan's sovereign credit rating to B3 by Moody’s and successful capital raising efforts through Eurobonds, boosting foreign reserves to over $21 billion. Although inflation expectations among businesses and consumers rose in September, the MPC remains focused on achieving price stability while monitoring the evolving situation.
Source: www.dawn.com
#global oil prices #inflation #interest rate #Monetary Policy Committee #State Bank of Pakistan
