On October 27, 2025 The State Bank of Pakistan has decided to maintain the interest rate at the current level of 11% in it’s monetary policy announcement. According to the central bank, no change in the interest rate was felt necessary in view of the current economic conditions, inflationary pressures and financial stability.
This was the fourth consecutive meeting of the State Bank’s Monetary Policy Committee in which it was decided to maintain interest rates. The committee said that although the inflation rate in the country is gradually declining, it is necessary to maintain a prudent monetary policy to further strengthen economic stability.
The central bank clarified that future interest rates will be determined taking into account inflation trends, fiscal discipline, and the external account situation. It may be recalled that the State Bank of Pakistan had reduced the interest rate by one percentage point in its meeting held on May 5 this year, reducing it from 12 percent to 11 percent which is still intact.
