Pakistan, Jan. 26 -- The State Bank of Pakistan (SBP) kept its key policy rate unchanged at 10.5 percent on Monday, following its Monetary Policy Committee meeting. Headline inflation stood at 5.6 percent in December 2025, while core inflation remained higher at 7.4 percent. The committee said this decision aims to ensure price stability and support sustainable economic growth.

The MPC noted that the trade deficit widened due to rising imports and falling exports, but remittances and stable global commodity prices helped contain the current account deficit. Real GDP growth for the first quarter of FY2026 was provisionally reported at 3.7 percent, driven by industry and agriculture. Consumer and business confidence also showed signs of im...