The State Bank of Pakistan (SBP) on Monday kept its policy rate unchanged at 11.5%, as the Monetary Policy Committee (MPC) maintained the benchmark rate at its meeting on September 14. "The MPC has decided to keep the policy rate unchanged at 11.5 per cent in its meeting held on September 14, 2026," said a statement by the SBP This is the second consecutive meeting in which the SBP has kept the monetary policy rate unchanged. The central bank had last raised the rate by 100 basis points to 11.5% at its April 27 meeting, against market expectations at the time. The announcement reflected a cautious approach amid mixed signals on inflation and external risks.   The Monetary Policy Committee (MPC) has decided to keep the Policy rate unchanged at 11.5 percent in its meeting held on September 14, 2026. — SBP (@StateBank_Pak) September 14, 2026 In July, the central bank also decided to maintain the policy rate at 11.5 per cent, citing an improved macroeconomic outlook tempered by elevated risks from the renewed conflict in the Middle East. The committee assessed that earlier de-escalation had lowered global oil prices and eased supply-chain pressures, contributing to some improvement in recent indicators. In its meeting, the MPC had noted that proactive policy management and fiscal consolidation had helped absorb the ongoing supply shock and preserve stability. It reiterated its commitment to bringing inflation into the 5-7 per cent medium-term target range and said the current stance remains appropriate. While announcing the decision during a press conference, SBP Governor Jameel Ahmed said inflation had declined gradually during the first six months of the year, averaging 5.5% between July and February, remaining at the lower end of the SBP's target range. He said the conflict in the Middle East had pushed up petroleum and global commodity prices from early March, increasing inflationary pressures through higher fuel prices and shipping costs. As a result, inflation accelerated to 11.7% in May before easing to 11.1% in June. The SBP expects inflation to decline further in July and continue moderating after September, he added. He added that higher wheat prices had also contributed to inflationary pressures. This story is being updated...