The State Bank of Pakistan’s Monetary Policy Committee held the policy rate at 11.5% on June 15, 2026, judging the current stance appropriate to steer inflation back to the 5-7% target range over the medium term as the macroeconomic outlook remained broadly unchanged despite higher inflation and signs of moderating activity. After holding at 10.5% in January and March 2026, the MPC raised the rate by 100 bps in April to 11.5%. The Committee said headline inflation rose to 10.9% in April and 11.7% in May, with core inflation increasing to 8.7% in May, and expects inflation to stay in double digits for the next few months before easing gradually, while provisional real GDP growth for FY26 was estimated at 3.7% versus 3.2% in FY25; broad money growth slowed to 14.3% y/y by May 29 and private sector credit grew around 13%. On the external side, the current account posted a cumulative deficit of USD0.2 billion in July-April FY26, while successful International Monetary Fund reviews and ongoing purchases lifted State Bank of Pakistan FX reserves to USD17.2 billion as of June 5, with reserves projected at USD18 billion by end-June 2026. Globally, oil prices have eased after recent positive geopolitical developments but remain above pre-conflict levels, and the Middle East conflict is increasingly feeding through to macroeconomic conditions. The MPC said it will closely monitor incoming data and evolving developments while reiterating the need for continued fiscal consolidation and f
State Bank of Pakistan2026-06-15
State Bank of Pakistan Holds Policy Rate at 11.5%
The State Bank of Pakistan’s Monetary Policy Committee kept the policy rate at 11.5% on June 15, 2026, judging the stance appropriate to return inflation to the 5-7% target range over the medium term as the macroeconomic outlook remained broadly unchanged despite higher inflation and signs of moderating activity. The Committee said headline inflation rose to 11.7% in May and is likely to remain in double digits in coming months before easing, while FY26 real GDP growth was provisionally estimated at 3.7%, the current account deficit stood at USD0.2 billion in July-April FY26, and foreign exchange reserves reached USD17.2 billion as of June 5.