The State Bank of Pakistan’s Monetary Policy Committee (MPC) unexpectedly kept the policy rate unchanged at 11% on Wednesday, citing concerns over rising inflation and a widening trade deficit. Despite cutting the rate from 22% to 11% between June 2024 and May 2025, the MPC has held it steady for the past two meetings. Key risks to the inflation outlook include volatile global commodity prices, potential hikes in energy tariffs, and the threat of widespread flooding.
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