KARACHI: The State Bank of Pakistan (SBP) has kept the policy rate unchanged at 11.5% following the Monetary Policy Committee’s meeting on September 14, 2026.
Seven of the 10 committee members supported maintaining the existing rate. The decision came as inflation and global economic risks continue to influence Pakistan’s monetary policy outlook.
Inflation and Global Risks Influence Decision
The committee noted that headline inflation increased to 11.1% in August from 9.2% in July. It also highlighted higher global commodity prices and ongoing supply-chain pressures linked to the prolonged Middle East conflict.
The SBP said the current monetary policy stance remains appropriate for bringing inflation toward its medium-term target range of 5% to 7%.
Property Sector Awaits Lower Financing Costs
The decision means borrowing costs for property buyers, developers and construction businesses will remain at current levels for now. A future reduction in the policy rate could make mortgages and construction financing more affordable and potentially support demand in the property market.
For now, buyers relying on bank financing may need to continue working with existing lending rates rather than expecting immediate relief.
The SBP also reported that foreign exchange reserves had reached $21.4 billion, supported by financial inflows and workers’ remittances, while external account pressures remained contained.
Market participants will now closely watch upcoming inflation data, global commodity prices and economic conditions for signals about the SBP’s next policy decision.
