KARACHI: The State Bank of Pakistan (SBP) has reduced the interest rate by 0.5%, bringing the policy rate down to 10.5%.
In its newly announced monetary policy, the central bank lowered the rate by 50 basis points, countering expectations from experts who had anticipated no change in the interest rate.
For the past four consecutive policy announcements, the SBP had maintained the interest rate at its previous level.
The Monetary Policy Committee, chaired by the bank’s Governor, conducted a comprehensive review of domestic and global economic conditions, inflationary developments, and growth indicators during its deliberations.
According to the SBP’s report, monthly inflation in November 2025 was recorded at 6.1%, while the country’s current account deficit stood at $733 million for the July to October period.
In its preceding policy announcement in October, the SBP had opted to keep the interest rate steady at 11%, citing prevailing inflation levels and the impact of recent floods across the country.
