The State Bank of Pakistan’s Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 11.5% despite persistent calls from the business community for a reduction to boost economic activity.Governor Jameel Ahmed announced the decision, emphasizing that maintaining macroeconomic stability is challenging due to sluggish growth.Analysts anticipated the rate freeze, with surveys showing over 90% of stakeholders expected the SBP to leave the rate unchanged.The central bank had previously cut rates to 10.5% in December 2025 before raising them to 11.5% in April 2026.While businesses urged further cuts to support growth, the MPC prioritized stability over aggressive easing.The decision reflects a balance between managing inflationary pressures and fostering economic recovery.

The article highlights the SBP’s cautious approach amid global economic uncertainties and domestic challenges, underscoring the complexities of monetary policy in Pakistan.