SBP decides to keep interest rates at 11%
Karachi: The State Bank of Pakistan has announced it will maintain the interest rate at 11 percent as per the Monetary Policy released on June 16, 2025. According to the Monetary Policy Committee, current economic indicators, such as declining inflation and improvement in foreign exchange reserves, are among the main reasons for this decision.
According to the SBP, the inflation rate has come down to 3.5 percent in recent months, and it is expected to remain within the target range of 5 to 7 percent by the end of the current fiscal year. On the other hand, factors such as uncertainty in oil prices in the global market and geopolitical tensions are also affecting the policy.
The State Bank has projected GDP growth for the upcoming fiscal year at 4.2 percent, which is better than last year. Officials say the decision is a balanced step aimed at controlling inflation while supporting economic growth.
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