The State Bank of Pakistan (SBP) on Monday left its benchmark policy rate unchanged at 11.5%, as the central bank maintained its cautious monetary stance at the first Monetary Policy Committee (MPC) meeting of fiscal year 2026-27.

The decision, taken during the MPC’s fifth meeting of the year, was widely expected by financial markets and analysts.

The central bank had also kept the policy rate unchanged at 11.5% in its previous meeting on June 15, saying the prevailing monetary stance remained appropriate to steer inflation towards its medium-term target range of 5-7%.

Ahead of Monday’s meeting, economists had broadly anticipated no change in interest rates, citing heightened geopolitical tensions in the Middle East and the risk of higher global oil prices despite easing domestic inflationary pressures and growing expectations for monetary easing.

A survey conducted by Topline Securities showed that 97% of respondents expected the SBP to maintain the policy rate, while the remaining 3% had forecast a 100-basis-point cut, Business Recorder said in a report.

Meanwhile, AKD Securities said Pakistan’s relatively comfortable external account position, supported by tight monetary policy, prudent fiscal management, an improving sovereign credit outlook and continued progress on structural reforms, had strengthened the case for maintaining the current policy stance.