- 11 percent
- 12 percent
- 13 percent
- None of these
As of May 8, 2025, the State Bank of Pakistan (SBP) has maintained its benchmark policy interest rate at 12%. This decision was announced during the Monetary Policy Committee (MPC) meeting held on March 10, 2025, and remains in effect.
The SBP’s decision to hold the rate steady follows a series of reductions totaling 1,000 basis points since June 2024, when the rate peaked at 22%. The central bank cited several factors influencing this decision:
- Inflation Trends: Headline inflation dropped to 1.5% in February 2025, primarily due to declines in food and energy prices
- Core Inflation: Despite the decrease in headline inflation, core inflation remains persistently high, indicating underlying inflationary pressures.
- External Account Pressures: The current account turned into a deficit of $0.4 billion in January 2025, and foreign exchange reserves declined due to weak financial inflows and ongoing debt repayments.
The SBP emphasized that maintaining the current policy rate is essential to sustain macroeconomic stability amid these mixed economic indicators.
