KARACHI: The State Bank of Pakistan (SBP) is expected to maintain the current interest rate at 11 per cent in its upcoming monetary policy announcement on Monday (Sept 15). The interest rate has remained unchanged since May, when it was lowered to 11pc.

While trade and industry groups have been calling for further cuts to stimulate economic activity, the SBP has remained unmoved. Despite a significant decline in inflation, which has provided an opportunity to reduce the real interest rate, policymakers are cautious about the long-term outlook. The gap between inflation and the policy rate is currently slightly below 8pc, but concerns about potential future........

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