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Pakistan Holds Steady Policy Rate Amid Inflation Concerns

6/18/2025

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Summary

Story summary

The State Bank of Pakistan (SBP) has decided to keep its policy rate steady at 11%, responding to inflation concerns fueled by the ongoing Iran-Israel conflict. While the economy shows signs of gradual recovery, worries about trade deficits and external pressures linger. Inflation is projected to stabilize within the target range of 5-7%.

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Story summary

The State Bank of Pakistan (SBP) has decided to keep its policy rate steady at 11%, responding to inflation concerns fueled by the ongoing Iran-Israel conflict. While the economy shows signs of gradual recovery, worries about trade deficits and external pressures linger. Inflation is projected to stabilize within the target range of 5-7%.