Pakistan Central Bank Likely to Hold Rates at 10.5 Percent

Analysts expect the State Bank of Pakistan to keep the key policy rate at 10.5 percent. Rising energy prices and regional tensions cloud the inflation outlook.

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The central bank of Pakistan is widely expected to maintain its key policy rate at 10.5% during its upcoming review on Monday. According to a Reuters poll of 10 analysts, the State Bank of Pakistan (SBP) is anticipated to hold the rate steady, following a similar decision in January. This pause follows an aggressive easing cycle where the bank reduced the key rate by a total of 11.5 percentage points from its peak of 22% in mid-2024.

The official logo of the State Bank of Pakistan is displayed at the entrance of its head office in Karachi. REUTERS/Akhtar Soomro
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