Interest Rate Frozen Amid Inflation Risks
The State Bank of Pakistan kept the policy rate unchanged at 11% for the fourth time to control prices amid rising inflation and global uncertainty. Inflation reached 5.6% in September, while core inflation stayed at 7.3%. Despite calls for rate cuts, the SBP stayed cautious. It raised GDP growth expectations to 3.25–4.25%, supported by strong manufacturing, good crops, and higher private-sector lending. The current account showed a $110 million surplus, and reserves are expected to reach $17.8 billion by June 2026. Inflation will likely stay high through FY26 before easing in FY27.
