Central bank keeps policy rate unchanged at 11pc

The State Bank of Pakistan (SBP) on Monday decided to keep the key interest rate unchanged at 11 per cent as policymakers weighed the impact of recent floods and higher food prices on inflation. “The Monetary Policy Committee (MPC) decided to keep the policy rate unchanged at 11 per cent in its meeting held on October 27, 2025,” the SBP announced in a post on social media platform X. A monetary policy statement, issued shortly after the announcement on X, said the MPC noted during the meeting that headline inflation “rose significantly” to 5.6pc in September, whereas core inflation remained unchanged at 7.3pc. Regarding the rise in headline inflation, the statement said, “This largely reflected the expected flood-induced increase in food prices; an uptick in energy prices; and sticky core inflation”.