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State Bank of Pakistan Reduces Interest Rate by 50 Basis Points
State Bank of Pakistan slashes interest rate by 50bps, bringing it down to 10.5% amid economic recalibration.
MH
by Muhammad Hashir
2025-12-15
State Bank of Pakistan Reduces Interest Rate by 50 Basis Points

The State Bank of Pakistan (SBP) announced a monetary policy on Monday, cutting the benchmark interest rate by 50 basis points to 10.50 percent.

The Monetary Policy Committee’s decision came as a surprise to many economic analysts, who had anticipated that the rate would remain steady at 11 percent. This marks the second reduction in the past year, following a 100 basis points cut in May 2025, after which the rate had been maintained at 11 percent for several months.

The SBP’s move is seen as an effort to support economic growth and provide relief to borrowers amid changing macroeconomic conditions. Analysts suggest that the reduced interest rate could boost investment, stimulate business activity, and improve liquidity in the market.

The central bank will continue to monitor inflation, growth indicators, and external factors to ensure the monetary policy aligns with Pakistan’s overall economic objectives.
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