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Pakistan's Central Bank Keeps Policy Rate Unchanged at 10.5% to Ensure Price Stability, Support Economy

BY MT Newswires | ECONOMIC | 01/26/26 08:43 AM EST

08:43 AM EST, 01/26/2026 (MT Newswires) -- Pakistan's central bank (SBP) Monay said its Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 10.5%.

The MPC deemed it "prudent" to hold the policy rate unchanged at the current level to ensure price stability and support sustainable economic growth, wrote the central bank in its policy statement.

Headline inflation of 5.6% year over year in December 2025 was in line with its expectation, note SBP. However, core inflation has steadied around a relatively higher level of 7.4% in recent months.

The MPC projects inflation to stabilize within the target range of 5% to 7% in FY26 and FY27, after temporarily exceeding the upper bound for a few months during this calendar year, added SBP.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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