SBP Holds Interest Rate at 11% Amid Inflation Drop
Islamabad – The State Bank of Pakistan, while announcing its monetary policy, has decided to maintain the interest rate at 11%.
The central bank says that inflation has declined in recent months, and the inflation rate in May 2025 was only 3.5%, which is a positive sign for the stability of the economy.
According to the bank, the real GDP growth for the current fiscal year has been 2.7%, while the economic growth target for the next fiscal year has been set at 4.2%.
The report said that foreign exchange reserves have reached $11.7 billion, while the current account was almost balanced in April 2025, and a surplus of $1.9 billion was recorded during the 10 months.
The State Bank warned that the trade deficit may increase due to the measures proposed in the budget.
While the agriculture sector has shown a disappointing performance this year. Nevertheless, the bank is optimistic that the industry and services sectors will support the economy next year.
The bank also said that recent budget measures will have a limited impact on inflation and that the current interest rate range of 5 to 7 percent is effective in keeping inflation under control.
