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Pakistan central bank surprises with hold on key policy rate

The State Bank of Pakistan decided to keep the policy rate unchanged at 12%, citing expectations of a temporary rise in inflation between March and May.
Economic activity is improving, but concerns about external pressures remain, particularly due to rising imports.
Despite keeping rates steady, core inflation is high, prompting analysts to suggest a slower pace for future rate cuts.
The International Monetary Fund reviewed Pakistan's $7 billion bailout program, which influences monetary policy and revenue targets.

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The Express Tribune

SBP maintains key interest rate at 12%

The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) on Monday decided to keep the policy rate unchanged at 12%, citing expectations of a temporary rise in inflation between March and May. In its announcement, the MPC stated: "At its meeting today, the committee decided to keep the policy rate unchanged at 12 percent." "Notwithstanding this decline, the committee assessed the risks posed by the inherent volatility in these pri…

2 days ago·Pakistan

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Channel News Asia

Pakistan central bank surprises with hold on key policy rate

KARACHI :Pakistan's central bank held its key policy rate at 12 per cent on Monday, it said in a statement, a widely unexpected move which halted an easing cycle that witnessed six straight reductions since June.The central bank has slashed rates by 1000 bps from an all time high of 22 per cent in June 2024,

2 days ago·Singapore

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Bloomberg

Pakistan Unexpectedly Holds Rate for First Time in Almost a Year

Pakistan unexpectedly held its benchmark rate for the first time in almost a year, with policymakers flagging risks to inflation from global trade disruptions and volatile food prices.

2 days ago·United States

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Dawn

Finance: Long road to economic recovery

Inflation has apparently bottomed out, but Pakistan’s journey to economic recovery may become even harder. The country’s national average inflation hit a decade-low in February 2025, with annual CPI inflation dropping to 1.5 per cent, down from 23.1pc a year earlier, according to the Pakistan Bureau of Statistics (PBS). This sharp decline signals the impact of economic stabilisation efforts, including a $7 billion International Monetary Fund (IM…

2 days ago·Pakistan

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Daily Lead Pakistan

PCDMA Rejects 12% Interest Rate Decision

Karachi: Salim Valimuhammad, Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), has rejected the State Bank’s decision to keep the interest rate at 12% and demanded a significant reduction. He expressed concern over the State Bank’s actions, which he believes are contrary to the ground realities. He emphasized that economic conditions in the country are improving, and inflation is decreasing, yet no significant reduction in…

1 day ago

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Political Uprise

Pakistan Halts Interest Rate Cuts, Keeps Key Rate At 12% Amid Economic Uncertainty – Political Uprise

In an unexpected move, Pakistan has decided to pause its cycle of interest rate cuts, keeping the key rate at 12%. This decision comes amid growing economic uncertainties, with inflationary pressures and external challenges influencing the country’s financial policies. The move raises questions about the future of Pakistan’s economic stability and its efforts to manage inflation and stimulate growth. Pakistan’s central bank unexpectedly halted i…

2 days ago

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