The State Bank of Pakistan (SBP) kept its policy rate unchanged on Wednesday at 11 per cent.

The central bank’s policy rate, after being slashed by 1,000bps from 22pc since June 2024 in seven intervals, was cut to 11pc in May. The bank had kept the rate unchanged on June 16 as well.

A press release issued by the SBP said its Monetary Policy Committee noted that inflation in June had decelerated to 3.2pc year on year, led mainly by lower food prices, whereas core inflation also declined slightly.

However, it noted that the inflation outlook had worsened in the wake of higher-than-anticipated adjustment in energy prices, especially gas tariffs.

“Nonetheless, inflation is projected to stabilise in the target range going forward.

“Moreover, economic activity is gaining further........

© Dawn Business