The State Bank of Pakistan (SBP) announced on Monday that it is maintaining its key policy rate at 22 per cent, marking the seventh consecutive meeting with no changes to the rate.

The Monetary Policy Committee (MPC), in its meeting, discussed ongoing macroeconomic stabilisation measures.

The committee noted that these measures have contributed to noticeable improvements in both inflation and the external economic position. This comes against a backdrop of moderate economic recovery.

The MPC’s statement following the meeting acknowledged that, while inflation has begun to improve, it remains high.

The committee also mentioned that global commodity prices seem to have stabilised, indicating resilience in global economic growth.

However, the committee highlighted a number of uncertainties. It pointed out that recent geopolitical events have created additional uncertainty in the global economic outlook.

Additionally, the upcoming budgetary measures might affect short-term inflation trends.

Given these factors, the MPC concluded that the current monetary policy stance should be maintained to achieve its inflation target of 5 to 7 per cent by September 2025.