Pakistan may keep rate at 11.5% despite inflation - Dawn
The State Bank of Pakistan is expected to maintain its key interest rate at 11.5% despite rising inflation and global energy costs. Analysts remain divided, with some citing the need for economic stability while others warn of the impact of global market pressures.
Why it matters
Monetary policy decisions in Pakistan directly impact the country's economic recovery and its ability to manage debt amid global inflationary trends.
--> The State Bank of Pakistan is set to decide on its key rate at the upcoming Monetary Policy Committee meeting amid accelerating inflation and rising global energy prices. The rate currently stands at 11.5%, and bankers mostly expect the regulator to leave it unchanged, Dawn reports.
At the same time, some analysts suggest a 50-basis-point rate increase. Business and industrial circles consider the current rate level high compared with competing markets.
Inflation in Pakistan reached 11.1% in August after falling to 9.2% in July. On April 27, the State Bank raised its key rate by 100 basis points, to 11.5%, due to rising global energy prices and risks to supply chains.
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