SBP Maintains Policy Rate at 11% Amid Flood and Inflation Concerns

The State Bank of Pakistan (SBP) has kept the benchmark policy rate unchanged at 11% in its latest Monetary Policy Committee (MPC) meeting held on 15 Sep 2025.

According to the central bank, the decision reflects a cautious stance as the economy continues to recover while facing risks of renewed inflationary pressures. The recent floods have disrupted supply chains, damaged crops, and fueled expectations of higher food prices in the months ahead.

The MPC noted that although inflation has shown signs of moderation, the potential impact of flood-related supply shocks and rising import costs could put upward pressure on consumer prices. Keeping the rate steady, the SBP said, will help maintain market stability while allowing space to assess the full economic fallout of the floods.

Analysts believe the decision was expected, with the SBP prioritizing price stability and external sector resilience ahead of the upcoming IMF program review.