KARACHI: The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) on Monday adopted a cautious approach and decided to keep the policy rate unchanged at 12 percent in response to risks arising from price volatility, persistent core inflation, and growing external account pressures due to rising imports and weak financial inflows.

With the fading impact of the low-base effect on inflation, along with a widening current account deficit and tax revenue shortfalls, the Monetary Policy Committee (MPC) has opted to maintain Pakistan's policy rate at 12% during its March 10, 2025, meeting, pausing the easing economic cycle.