Pakistan's central bank has kept its policy rate unchanged at 11.5%, signalling confidence that the current monetary policy stance will steer inflation towards its medium-term target while monitoring external risks, with the decision also maintaining the benchmark rate used to calculate interest and penalties on late tax payments.

RF Report

The State Bank of Pakistan (SBP) announced on Monday, 27 July 2026, that its policy rate will remain unchanged at 11.5%, with the Monetary Policy Committee (MPC) concluding that the current monetary policy stance remains appropriate to guide inflation towards the 5-7% target range over the medium term despite risks from the Middle East conflict.

Announcing the decision, SBP Governor Jameel Ahmad said, “MPC has decided to keep the policy rate unchanged at 11.5%”.

The key policy rate is applied to calculate interest and penalties on late tax payments.