Pakistan Central Bank Keeps Policy Rate at Ten Point Five Percent Defying Market Expectations
The State Bank of Pakistan kept its key interest rate at 10.50 percent on Monday. This decision surprised analysts who had predicted a further rate reduction.
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The central bank of Pakistan 
PKopted to maintain its key policy rate at 10.50% on January 26, 2026. This decision, led by Governor Jameel Ahmad jameel ahmad, defied broader market expectations as a Reuters poll conducted ahead of the meeting had anticipated a 50-basis-point cut. The hold marks a strategic pause in an aggressive monetary easing cycle that has seen cumulative reductions of 1,150 basis points since mid-2024, after interest rates reached a record peak of 22% in 2023.
PKopted to maintain its key policy rate at 10.50% on January 26, 2026. This decision, led by Governor Jameel Ahmad jameel ahmad, defied broader market expectations as a Reuters poll conducted ahead of the meeting had anticipated a 50-basis-point cut. The hold marks a strategic pause in an aggressive monetary easing cycle that has seen cumulative reductions of 1,150 basis points since mid-2024, after interest rates reached a record peak of 22% in 2023.
