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Pakistan Cenbank Holds Key Policy Rate at 11.5%
The central bank said inflation is likely to stay in double digits for several months before easing toward its 5% to 7% target range.
- On Monday, the State Bank of Pakistan's Monetary Policy Committee held the benchmark policy rate at 11.5%, aligning with expectations from 22 of 39 analysts surveyed by Bloomberg.
- Following a deal between the United States and Iran to end their conflict, global oil prices eased, supporting the central bank's pause on tightening despite headline inflation reaching 11.7% in May.
- The Pakistan Bureau of Statistics provisionally estimated GDP growth at 3.7% for FY26, while successful International Monetary Fund reviews for the Extended Fund Facility and Resilience and Sustainability Facility increased foreign exchange reserves to $17.2 billion as of June 5.
- Officials assessed the current monetary policy stance remains appropriate to guide inflation toward a 5% to 7% medium-term target, noting economic activity shows moderation amid elevated prices and austerity measures.
- Risks including geopolitical developments, uncertain food prices, and adverse weather could cloud Pakistan's growth outlook for FY27, with inflation expected to remain in double digits before gradually easing.
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Central bank keeps policy rate unchanged at 11.5pc
The State Bank of Pakistan decided to keep the policy rate unchanged at 11.5 per cent on Monday. The decision was made during a meeting for the final policy review of FY26. In a detailed statement, the MPC said that global oil prices had eased in light of recent geopolitical developments; however, it noted that the prices remained elevated compared to pre-conflict levels. “Nonetheless, as anticipated in the last MPC meeting, the impact of the c…
·Pakistan
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Coverage Details
Total News Sources13
Leaning Left3Leaning Right4Center2Last UpdatedBias Distribution45% Right
Bias Distribution
- 45% of the sources lean Right
45% Right
L 33%
C 22%
R 45%
Factuality
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