Karachi: The State Bank of Pakistan (SBP) has decided to keep its policy rate steady at 11.5% during its June 2026 Monetary Policy Committee (MPC) meeting. The decision comes amid rising global oil prices attributed to the ongoing conflict in the Middle East, which has significantly influenced the country's inflation dynamics.

According to JS Global, the MPC noted that the inflation rate has returned to double digits, driven by increased energy prices, adverse base effects, and their impact on food and services inflation. Despite this, May's inflation data indicated a slight moderation from April's figures. The committee anticipates that the elevated inflation will persist in the coming months before gradually declining.

The SBP's foreign exchange reserves have been bolstered to $17.2 billion following successful reviews of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) by the International Monetary Fund (IMF). The reserves are projected to reach $18 billion by the end of the fiscal year 2026. Meanwhile, the current account deficit remains low at $0.2 billion for the first ten months of FY26, aided by remittances.