SBP reduces policy rate by 50bps to 10.5%

Karachi (Web Desk): The State Bank of Pakistan (SBP) has announced a reduction in the policy interest rate in its latest monetary policy, cutting the benchmark rate from 11% 10.5%, a decrease of 50 basis points.

According to the central bank, the decision has been taken by its Monetary Policy Committee (MPC) to support economic stability, encourage investment, and stimulate business activity.

Monetary Policy Committee has decided to decrease the policy rate by 50 basis points to 10.5 percent w.e.f. December 16, 2025.#SBPMonetaryPolicy

— SBP (@StateBank_Pak) December 15, 2025

With the revised interest rate, liquidity conditions in the financial market are expected to improve, while lower borrowing costs are likely to provide relief to both businesses and consumers.

The SBP further stated that the move is aimed at keeping inflation under control and contributing to more balanced and sustainable overall economic growth.